This is reflected in people’s beliefs as well, according to a new survey that shows consumer sentiment has hiked up considerably since January.
This suggests that the U.S. economy is on the right track and is expected to bounce back in the following months.
The survey was designed and carried out by experts at the University of Michigan. Its results revealed that consumer sentiment index increased by 6 points compared to the previous month.
Thus, a 90.1 rise was recorded in May compared to 96.1 this month. This is the highest since January, when 98.1 was reported, according to Richard Curtin, who is a chief economist for the survey.
What is even more important is the fact that consumers seem to be happier in 2015 than they used to be within the past 10 years. Experts say that this year’s index seems to be the highest since 2004.
Their happiness is also reflected in the 3 percent rise recorded in consumer spending in 2015. Nevertheless, he way Americans spend shows that they are still being cautious, even if their income is now on the rise.
The first months of the year did not record a hike in spending, but this might be due to the harsh winter conditions that prompted people to save more and steer clear of tempting shopping centers.
Now, with the summer kicking in and with the vacation offers lining up, it is expected that the spending rate will rise and that the famous American consumerism will make a comeback very soon.
This is obviously seen as a very good thing for business and economy in general.
Analysts say that these high numbers are the result of more stability on the labor market and the increasing number of jobs available for Americans. It was reported that employees have added 3.1 million more jobs than last year and unemployment rates went down by almost one percent compared to 2014.
At the same time, the minimum wage has been increased in many states, even if at a slower pace than it was expected. However, even a small hike means people will be able to afford a better lifestyle.
More money in the Federal Reserve might also encourage the Central Bank to increase interests rate for deposits. Analysts think that this is due to happen sometime in September .
Image Source: referenceforbusiness