Consumer confidence has rebounded from the dip last November after the hurricanes in the Gulf of Mexico. Though there have been other dips in confidence since November, namely in February when the outlook on the job market temporarily lowered consumer confidence.
Also of concern is the housing market. Though consumer confidence bouncing back, the housing market is still seeing a slump. With the increase in interest rates by the Federal Reserve instituted to combat inflation, now at 5.25%, and the possibility of another increase in interest rates in August, economist and realtors are worried at the effect of the increase on the housing market. The higher interest rates will make financing a house more cost prohibitive for many who are already in debt.
Consumer confidence is measured and examined so closely because the majority of all U.S. economic activity comes from consumers. This month’s confidence is promising but nothing to get too excited about, the gradual increase in gas prices during one of the busiest driving times is still of consumer concern. ■
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