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.
Related: Is Trump the Best Economic Growth President Ever?
Armed with strong economic data and with consumer sentiment at a high and the Federal Reserve primed for interest rate hikes through the rest of 2018. The Fed has already raised rates twice this year and the prevailing sentiment in the capital markets is that two more will take place–one slated for tomorrow when the Fed is scheduled to make the third rate decision for the year.
Additionally, with the holiday season looming, the consumer confidence levels should be welcome news for retailers.
“These historically high confidence levels should continue to support healthy consumer spending, and should be welcome news for retailers as they begin gearing up for the holiday season,” said Franco, the Conference Board’s director of economic indicators.
For more trends in fixed income, visit ETF Trends.