Americans’ View on Economic Outlook Climbs to Three-Month High
By Michelle Jamrisko - Mar 21, 2013
Americans’ views of the economic outlook improved in March to the highest level this year as stock prices rallied to a record high.
The gap between positive and negative expectations narrowed to minus 4 this month from minus 7 in February, according to results of the Bloomberg Consumer Comfort Index. The weekly measure fell for the first time in seven weeks, to minus 33.9 from minus 31.6.
Gains in the stock market and stable home prices may be making consumers feel wealthier, giving them the wherewithal to boost the spending that makes up about 70 percent of the economy. At the same time, further improvement in sentiment will be tested by higher payroll taxes and concerns government budget cuts may hold back the economic expansion.
“Americans are growing more confident about their own financial and economic situations,” said Joseph Brusuelas, a senior economist at Bloomberg LP in New York. “A quicker pace of employment growth, a modest wealth effect, and what looks to be a decline in gasoline prices has likely bolstered future expectations on the economy.”
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http://www.bloomberg.com/news/2013-03-21/americans-view-on-economic-outlook-climbs-to-three-month-high.html