The Conference Board reported on Tuesday that its Consumer Confidence Index registered its highest reading in 18 years, beating a previous high set back in September 2000. The index climbed to 138.4 this month compared to the 134.7 reading in August.
Backed by a strong U.S. equities market that has already seen the major indexes like the S&P 500 reach record highs and companies like Apple and Amazon hitting the $1 trillion market capitalization level, the consumer confidence backs the current sentiment regarding the economy. Furthermore, the gross domestic product grew by 4.2% during the second quarter, which will apparently be revised to 4.3%.
The latest consumer confidence data also corroborates with CNN’s Fear & Greed Index, which is comfortably tilted to the right, indicating that emotions are currently positive with regard to the capital markets.
“Consumers’ assessment of current conditions remains extremely favorable, bolstered by a strong economy and robust job growth,” said Lynn Franco, director of economic indicators at the Conference Board.