Consumer confidence at four year high

A new report released Tuesday shows consumer confidence is at its highest level in four years.

“Experts predict that sales rising around 4 percent for the holidays. Consumer confidence is the result of how confident people feel about the income determines their spending and ultimately the overall shape of the economy.”

The Conference Board’s monthly confidence index rose for the third straight month with November’s peak being 73.7 percent -- the highest its been since the 2008 recession began.

The Global Economic Intersection breaks down the numbers, showing consumer confidence was at an all-time low during the recent 18 month recession, averaging just 54 percent.

“If people don’t feel certain at least a little bit about their future, they’re not as likely to go out and buy that washing machine, that refrigerator, that small appliance and certainly not a car or even a home.”

A writer for The Hill’s Finance and Economy blog isn’t so confident the number will stand.
He writes, “If the fiscal cliff’s $600 billion in tax hikes and sudden spending austerity hits, consumer sentiment could rapidly evaporate.”

But BusinessWeek argues that sustained gains in consumer spending may help overcome concern about the fiscal cliff.

The report also shows Americans planning to buy a home rose to a record high.