Consumer Confidence and Wage Growth Are Up!

US consumer confidence, which measures consumers’ feelings about current and future economic conditions, rose to an 18-year high in October.  The consumer confidence index increased to a reading of 137.9, the highest reading since September 2000.  Lynn Franco, Director of Economic Indicators at the Conference Board stated, “Consumers do not foresee the economy losing steam anytime soon, rather, they expect the strong pace to carry over into early 2019.”  A solid job market and an increase in consumer spending are two main factors driving the strong confidence in the US economy.

In other economic news, according to data released by the Department of Labor, wages and salaries rose 3.1% in the third quarter, representing the biggest increase in a decade.   Previously, wage increases represented the one missing piece in the economic recovery.  With the unemployment rate at a near 49-year low of 3.7%, and the labor market beginning to tighten, wage growth is beginning to push higher.  Michael Pearce, Senior US Economist at Capital Economics reiterated that notion, and “expects wage growth to accelerate further from here.”