Consumer confidence surprises many and surged in August, according to today’s report from the Conference Board’s Consumer Confidence Index. The Index rose to 101.5 (following July’s dismal reading of 91.0), beating economists’ projections of 93.3. This month does mark the highest point since November 2007, welcome news to most business owners looking for consumers’ wallets to finally pry open a bit.

The report indicates that consumers are more upbeat, as the years-long choke hold of uncertainty is starting to ease. Consumers are beginning to feel better about the near future, but universally, income expectations did not improve (perhaps just having a job is an improvement for many Americans). Those who viewed jobs as “plentiful” did increase from 19.9% in July to 21.9% in August. Those persons who viewed jobs as “hard to get” decreased from 27.4% in July to 21.9% in August.

But didn’t the stock market crash?

Recent stock market madness has many feeling uneasy this week, but shouldn’t. First, the opening sequence was rough following China’s market which began to correct, and should be good in the long run as their manipulation of their currency has hurt the global economy for years (I’m sure you’ve heard Trump mention that a few times before).

Second, most retirement accounts are most likely comprised of stocks you’ll hold for years, so the people most impacted by the fluctuation are day traders who buy and sell several times in a day, not over a lifetime – they’ll rebound.

Third, the turmoil will hopefully be offset by the plummeting in oil prices currently trading under $40/barrel, leaving cash in consumers’ pockets (along with more optimism)!

In July, new Home sales rebounded, although new starts and permits are down, and existing home sales did rise for the third consecutive month, leaving low inventory levels and affordability as the remaining housing challenges. Auto sales have also been steadily improving for months as lending conditions loosen, albeit slightly.

Consumers are consistently hearing more positive news, which makes it slightly easier to open their wallets, so business owners, rejoice and everyone smile ! The economic crash has been over for a bit, but consumers’ mentality is still catching up as we all recover together. 

 

ann arbor real estate, saline, Michigan, homes, houses, sold, broker, realtor, Rent, condo, realty, pricing, confidence, consumer, price, index, tom, stachler, thomas