Lynn Franco Labor Quotations

Much of the decline in confidence over the past two months can be attributed to the recent hurricanes, (gas) pump shock and a weakening labor market.

Growing optimism about the overall health of the economy continues to bolster consumers' short-term outlook. But consumers' assessment of current conditions, which strongly hinges on improvements in the labor market, remains both weak and volatile.

With unemployment at a 30-year low and the short-term Conference Board forecast projecting favorable labor market conditions, confidence is expected to remain strong through the summer. Volatile financial markets and interest rate hikes are not expected to have a significant impact.

Consumers' upbeat mood about current business and labor conditions underscores the economy's continuing recovery, but the latest retreat in expectations suggest that the pace of economic growth will not accelerate in the months ahead,

The tight labor market and continue optimism about jobs is clearly keeping consumer spirits high.

Consumers' confidence has been bolstered by the improvement in business and labor market conditions, ... The latest gains are striking. This new boom in confidence should translate into increased consumer spending and stronger economic growth ahead.

The lack of improvement in labor market conditions continues to dampen consumers' spirits, ... Despite September's retreat, consumers remain cautiously optimistic about the outlook for the next six months. Consumer spending is likely to continue at or near current levels.

The improvement in the present situation Index, especially in the jobs component, suggests that consumers believe a slow but sure labor market turnaround is underway. The rise in expectations is a signal that consumers will end this year much more upbeat than when the year began.