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US consumer confidence hits highest level since 2000

Jan 16, 2020, 23:35 IST
Kamil Krzaczynski/Reuters

US consumers are the most comfortable they've been with the economy since 2000, according to Bloomberg survey data.

The company's index of consumer comfort hit 66 in the week ending January 12, up from 65.1 the week prior. The latest reading is the highest since October 2000, and marks the figure's eighth weekly gain in the last nine weeks.

Americans' economic sentiment climbed to the highest since early 2001, Bloomberg reported.

The more than 19-year high comes amid new records for the US stock market and continued strength in the nation's labor force. The economy added 145,00 nonfarm payrolls in December, bringing total gains for 2019 to 2.1 million. The additional jobs kept the US unemployment rate at a half-century low of 3.5%.

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Wage growth fell short of the highs seen earlier in 2019, but continued to outpace inflation through December. Average hourly earnings rose 2.9% from the year-ago period, slowing from its November pace and likely supporting the Federal Reserve's stance to hold off on additional interest rate shifts.

Record stock prices are also fueling increased positivity and income gains, as companies continue to post new highs after surging through 2019. All three major indexes reached record highs Thursday, boosted by the Wednesday signing of the phase-one trade deal between the US and China.

The Bloomberg index tracks a weekly survey of 1,000 randomly selected Americans and measures sentiment toward the economy, personal finances, and spending habits.

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