Economy Surges As Consumer Confidence, GDP Beat Expectations

The economic outlook surged this week, with consumer confidence and the gross national product both leaping forward. And while personal spending slowed last month, personal income and consumer savings are on the rise. All are positive signs for the economy in general, and all bode well for growth in franchising and small businesses.

  • Consumer confidence rose in October to a seven-year high as employment opportunities and declining gasoline prices boosted Americans’ spirits. The Thomson Reuters/University of Michigan final index of sentiment increased to 86.9, the highest since July 2007, from 84.6 in September.  – Bloomberg
  • And he Conference Board’s index climbed to 94.5 this month, the highest since October 2007, from a September reading of 89 that was stronger than initially estimated, the New York-based private research group said. – Bloomberg
  • U.S. GDP up 3.5% in Q3: “After an even faster pace of growth in the spring, the higher-than-expected advance in gross domestic product — a measure of all the goods and services produced in the United States — was driven by gains across the board, bolstered by an unusual burst of military spending and a more favorable trade balance.” – New York Times
  • U.S. consumer spending fell in September for the first time in eight months, but personal income rose 0.2 percent in September after increasing 0.3 percent in the prior month. With income growth outpacing consumption, consumer savings jumped to $732.2 billion, the highest level since December 2012. – CNBC

 

 

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