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Improvements in the current state of the labor market had a hand in the confidence in U.S. consumers rising up to the highest level in a solid year. This brings hope to the economy as consumers will be more likely to make purchases as the nation is slowly on the mend.
As observed by a New York private research group's study, The Conference Board's index of confidence has gone down to 70.2% after the recent 71.6% that was reported in February. We have seen the best growth in employment in the past six months than we have been able to see in all since 2006. This along with current stock market gains are encouraging more consumers to spend. Consumer spending helps to make up at least 70% of our nation's economy.
One thing that stands in the way of the economy getting back on its feet would be the back and forth change in prices of gasoline. Many economists assume that if gas prices hold steady at around $4.00 per gallon for a while, many consumers will continue to spend as they have been over the past few months.
AAA reports gas is at its highest again, highest since the past ten months with a national average of $3.90.
It is hard to get a good picture of where the economy is at right now. Even with employment opportunities on the rise, the prices of food and gas keep inching upward and falling back down. This roller coaster ride does not give consumers much confidence for the long term.
In Orlando, FL it has been reported that there has been a 2.3% increase in consumers going out to eat at major dine-in restaurants during the third quarter. Economists are expecting a 2.5% increase in these numbers for the remainder of the year.
In a similar report, home prices in several United States cities have been dropping at a much slower pace since they were at the beginning of the year in January. This is also good news because it shows that the buying and selling of residential homes is becoming more stable. Home prices had fallen down to 3.8% back in January of 2011; however they have not changed much at all from last December until now.
The stock market is another area that has not seen as much change lately. The Standard & Poor's 500 Index reports stocks are down less than 0.1% from yesterday. The indicative 10-year Treasury note fell 2.2% today while it was at 2.25% yesterday. J.P Morgan Chase continues to be punished on Wall Street thnks to its 1 billion dollar gambling loss.
While finances may still be uncertain for the country as a whole, it does seem that the trend is more spending, which leaves economists to assume that people have found stable income thus they are spending more freely.
Aaron Norris is VP of The Norris Group who specializes in hard money loans, ca hard money and private real estate loans in California. He blogs for them on their website and on top real estate investment websites. It's easy to qualify for hard money loans on their website http://www.thenorrisgroup.com- Visit them online to learn more about ca hard money lenders, private money lending and rehab loans today.