In October, consumer confidence rebounds after three months of decline. How will it impact spending? Deborah Weinswig, Managing Director of Fung Global Retail & Technology (FGRT), weighs in on consumer confidence, the spending outlook, and impulsivity.
• Prosper Consumer Confidence: This month, 9% of consumers are confident or very confident in the economy, rising about two points from last month and increasing more than 25% year over year. The current reading is tracking just ahead of the 13 month average of 51.8%. At 63.7%, confidence among small business owners is flat from last month (63.6%). “Consumer confidence is tracking economic expansion. The U.S. economy has been growing at a 3% pace for six months now, and heading into the prime gift giving and getting season, consumers have the wind at their back. FGRT examined confidence by household income level, which revealed 61.9% of the wealthiest households (with annual income of $75,000+) are confident/most confident versus 55.3% consumers with household income in the $35,000 to $75,000 range, and 44.1% of consumers with household income less than $35,000. That confidence increased for all three income cohorts at a double-digit year-over-year pace; up 21.6%, 21.3% and 16.8% for consumers with household incomes of $75,000+, $35,000 to $75,000 and less than $35,000, respectively, bodes well for retailers generally, regardless of their target income demographic,” Weinswig commented.