Courtesy of John Nyaradi
By Wall Street Sector Selector Staff
September’s Consumer Sentiment report was released today, and American consumers have a better opinion of the US economy than they did in August.
The index rose from 55.7 in August (a three year low) to 57.8 this month. Economists say that the rise is related to hopes that the economy is improving.
The stock markets apparently agreed with consumer sentiment, as the markets had multiple field days this week and closed out this afternoon on top. Is this sustained growth or only a mask of what might really happen?
However, the rise of consumer sentiment and possibly the economy might be short lived, especially since the European crisis is not yet resolved, and both political parties in The United States are likely to start fighting to the death (again) over stimulus, budgets, and deficits very soon.
The consumer sentiment report measures how consumers view the general condition of the economy, in particular, it studies how consumers view buying conditions and their own ability to spend.
Even though consumer sentiment rose this month, looming threats to the economy and more possible volatility down the road warrant a”D-” grade for this report.
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