U.S. Consumer Confidence Heating Up

Consumer sentiment continued to heat up this month despite the deep freeze gripping much of the country, according to the most recent results of the RBC CASH (Consumer Attitudes and Spending by Household) Index, which measured the attitudes of 1,000 Americans earlier this week. Overall consumer confidence rose by nearly 8 points in February, as Americans’ assessments of current conditions, investing and job security increased substantially. Although opinions regarding future conditions dipped significantly, overall optimism in all other areas surveyed outweighed increasing pessimism for the future. As a result, the RBC CASH Index for February released today by RBC Financial Group, stands at 103.0, compared to 95.3 in January and 96.1 one year ago.
 
"The chill in the air has not dampened Americans’ enthusiasm for current economic conditions," said T.J. Marta, Economic and Fixed Income Strategist for RBC Capital Markets. "Consumers appear to be buoyed by the strong jobs market, gasoline prices that have reached a 14-month low and equity holdings that have reached a high since the dot.com era."

The RBC CASH Index is a monthly national survey of consumer attitudes on the current and future state of local economies, personal finance situations, savings and confidence to make large investments. The Index is composed of four sub-indices: RBC Current Conditions Index; RBC Expectations Index; RBC Investment Index; and, RBC Jobs Index. The Index is benchmarked to a baseline of 100 assigned at its introduction in January 2002. This month’s findings are based on a representative nationwide sample of 1,000 U.S. adults polled from February 5-7, 2007, by survey-based research company Ipsos Public Affairs.

Highlights can be read here.