Consumer confidence has begun to rebound as recent stock market gains and better than expected economic data fual hopes that the 17 month recession might be coming to an end.
The IBD/TIPP economic index rose to 49.1 from 45.3 in March, its highest level since November, when Barack Obama's election victory sparked a brief spike. That's still below the 50 mark that indicates optimism, but it's 5.3 points above the 12-month average and only 2.2 points below the long-run average of 51.3
Stronger than expected durable goods orders and home sales have helped drive a month long stock market rally, giving consumers and investors a long awaited sense of hope. Changes to accounting rules aimed at stemming losses at big banks also helped.
Corporate executives, however, appear glum. The Business Roundtable's CEO economic outlook index dived Tuesday to minus 5, the first negative reading since the survey began in 2002. Readings below 50 indicate CEO's expect the economy to contract.
More than two-thirds of CEO's said they plan additional layoffs and expect sales to fall in the next six months, the survey said.
The economy is expected to start a gradual recovery later this year. But much is riding on the government's $787 billion stimulus and efforts to stabilize the financial system, analysts say.
Content for this blog was provided by and printed Jeff Bradburn, Sr. Loan Officer at Lakeside Lending, 3701 W. Waco Dr. Waco Texas. Call him at 254-495-9696 or jbradburn@txlmortgage.com.
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