NEWS3 August 2016

US consumer confidence on the rise despite political uncertainty

Finance News North America Trends

US — Americans remained optimistic about their economic prospects in Q2 2016, despite being in the midst of a contentious presidential election season, according to figures from Nielsen. 

American flag crop

According to the latest Consumer Confidence Index data from Nielsen, there was a three-point confidence increase from the first to the second quarter of 2016. In contrast, the global consumer confidence index for the same period remained flat at 98. 

Seventy per cent of Americans were confident that their personal finances would be good or excellent in the next 12 months, while 58% felt the same about their spending intentions, and 56% their job prospects. 

Personal finance sentiment and immediate spending intentions increased two percentage points each in the second quarter, while the outlook for jobs rose by four percentage points. 

"With US unemployment at a rate of 5% or below since August 2015 and the housing market continuing to expand, American consumers have been spending," said Louise Keely, senior vice president, Nielsen, and president, The Demand Institute.

"However, not all sectors are benefiting equally. Packaged goods retail sectors and value oriented retail channels, in particular, are experiencing slower growth than that of overall consumer spending."  

The full report can be downloaded here