Confidence Rises Sharply as Buying Climate Ratings Improve
Consumer confidence surged this week with its biggest one-week gain in eight months -- largely on the strength of improved ratings of the buying climate.
The ABC News/Washington Post Consumer Comfort Index stands at -7 on its scale of +100 to -100, up five points from last week, moving out of negative double-digits where it languished for the past five weeks. This marks the 18th time since the survey began in December 1985 that the index gained five or more points in one week.
The surge in the overall index is fueled by a brighter opinion of the buying climate. This week, 39 percent of Americans call it a good time to buy things, an increase of five points over the previous week -- the largest one-week jump in this component of the index in its 21-year history. This measure has increased by four points in one week only eight times since the survey began, most recently this past March. One factor likely contributing to improved confidence is lower gasoline prices. Gas prices now average $2.96 a gallon in the weekly U.S. Department of Energy survey, down from a peak of $3.22 May 21.
INDEX -- The ABC/Post index is based on Americans' ratings of their own finances, the national economy and the buying climate. This week's numbers show a dramatic increase in positive ratings of the buying climate.
As noted, the five-point improvement in positive ratings of the buying climate is the largest one-week increase for this component. This week's rating of 39 percent is essentially the same as the 2007 average, 38 percent.
Sixty-one percent of Americans rate their own finances positively, matching the 2007 average. Ratings of the national economy, 40 percent positive, are three points below their yearly average.
TREND -- While the steady decline since early May rebounded this week, the index is still nine points below its 2007 high of +2 on March 11. With the five-point increase, the CCI is nearing the year's average, -6.
The CCI's 21-year average is -9, with a range from a high of +38 in January 2000 to a low of -50 in February 1992.
