A report released by Gallup this morning indicates that consumer confidence in the United States is on the rise, adding to earlier good economic news about the lowest deficit in six years.
The report rates consumer confidence at -12, which, while still negative, indicates a steady rise for 2014, and the first time consumer confidence has been this high this year. In even more good news, Gallup indicates that it is likely to continue rising, saying, “With the stock market having ended last month on a positive note and gas prices continuing to drop, it is reasonable to expect the gains made in October to be sustained in November.” Not only that, they also mention that the gain from September to October was the largest monthly improvement this year.
Higher income Americans were predictably much more confident, with a slightly positive ranking for the first time this year. Confidence was also split along partisan lines, with Republicans lowest, as seen below:
It’s almost funny — decreased spending is bad for the economy, causing stagnation, so Republican fears about President Obama’s economic capabilities actually have self-fulfilling potential. Importantly, note that while confidence among Independents is still low in the graph above, there is a stark difference in the lines — the Independent graph is on the rise, while the Republican graph is flat. They’re going to remain pessimistic regardless of facts.
Increased confidence will indicate increased spending, especially as the holidays roll around. And increased spending is good for the economy, which may further boost consumer confidence. All in all, the October report is a good note for the Obama administration. Maybe if this data had been available ahead of time, fewer Democrats would have thrown President Obama under the bus on the campaign trail!
(Featured image courtesy of sodahead.com)