New numbers from Gallup shows the confidence of US consumers ticking up to its highest level in four years after positive news in last weeks’ jobs report. Americans’ future outlook is more positive than their rating of the current conditions, but it’s risen faster from the very low period after the debt ceiling fight in the summer of 2012. Just the same, the polling organization was careful to note the pitfalls of the unstable economic conditions:
This improvement in consumer perceptions is taking place despite sharply higher gas prices at the pump. In this regard, Gallup data find gas prices would need to climb to more than $5 per gallon before consumers would need to significantly alter their lifestyles. Of course, increasing gas prices may have a negative effect on consumer economic perceptions far before they reach the $5 per gallon infliction point…
It appears economic confidence is at another possible turning point, with gas prices on a pace to reach record highs in the summer. Further, it is not clear if the government can continue to report more good jobs news given modest economic growth.
