Consumer Comfort in U.S. Hovers Near Highest Level in 17 Years

(Bloomberg) -- Americans' sentiment remained close to a 17-year high on rosier views of personal finances and the buying climate, as workers enjoy more take-home pay after the recent tax-cut legislation, according to the weekly Bloomberg Consumer Comfort Index released Thursday.

Highlights of Consumer Comfort (Week Ended Feb. 25)
Weekly index eased to 56.2 from 56.6 Personal finances gauge was little changed at 60.6 after 60.4 Index of buying climate increased to 48.4 from 47.8 Measure tracking current views of the economy dropped to 59.7 from 61.7, its largest one-week decline since October

Key Takeaways

Robust sentiment last week was driven by a pickup in optimism among middle- and upper-income Americans. Comfort among those earning $50,000 or more annually reached a 17-year high last week. At the same time, confidence declined among people earning less than $50,000, highlighting disparities in comfort levels among different income groups. Sustained optimism and lower taxes have the potential of boosting consumer spending, which accounts for about two-thirds of the economy.

Other Details

• Comfort among Americans with a college education reached the highest reading since March 2001
• Married Americans reported their highest comfort level since December 2000
• Among the four U.S. regions, sentiment was higher last week only in the South

To contact the reporter on this story: Shelly Hagan in Washington at shagan9@bloomberg.net.

To contact the editors responsible for this story: Brendan Murray at brmurray@bloomberg.net, Vince Golle, Scott Lanman

©2018 Bloomberg L.P.

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