Consumer Confidence Rises as Gas Prices Plunge, Stocks Rise to 5-year Highs and Rates Fall

- Consumer Confidence for September rose to 104.5 versus estimates of 103.0 and a reading of 100.2 in August.

BOTTOM LINE: Confidence among US consumers rebounded more than forecast in September as Americans paid less at the gas pump and interest rates fell, Bloomberg reported. The expectations component of the index rose to 89 versus a reading of 84.4 the prior month. Optimism about consumers’ present situation surged to 127.7 this month from 123.9 the prior month. The share of consumers that perceived jobs as plentiful rose to 25.9% versus 24.5% the prior month. I expect confidence readings to rise further over the intermediate-term as stocks rise further, energy prices continue to decline, the job market remains healthy, interest rates remain low, inflation decelerates, housing stabilizes and irrational pessimism lifts.