After a rough few years with the foreclosure crisis and overwhelming debt troubles experienced by so many Americans, a new report suggests that consumer confidence is rising. In fact, the outlook for the U.S. economy is improving, especially in the areas of retail and real estate.
Thoughts Lead To Action
Although not too much has changed in the retail or home value markets as of yet, industry analysts are becoming more hopeful than in years past.
Retail spending habits are on the rise and it is expected that consumers will spend more this holiday season than in the last five years. With consumer spending comes a greater economic boost as businesses become more optimistic, which then filters back down to consumers in the form of lower prices; and even feeds the job market with job opportunities.
The homebuilder confidence index also rose to its highest levels in six years. With more people considering building rather than buying an existing home or renovating their current home, construction companies could see a significant boost in business in the coming months. New homes help bring up home values, and increasing home values help recoup confidence lost in homeownership.
Interestingly, most of what we are seeing in the way of improvement comes in the form of attitudes, not any real tangible action. However, it is a well known fact that consumer confidence plays a key role in the health of the economy. Further, holding a positive outlook on the economy influences markets, which then cycle back around to reinforce the opinions held by the consumer in the first place; the very opposite of the “vicious cycle” people tend to think of when viewing the economy.