May not be a true statement in certain parts of the nation but for the most part that is what the latest RBC Financial Group survey had to say about consumer sentiment that hit an all time low back in February and is on the climb....
- The RBC Jobs Index saw a rise of 9.2 points in May to 54.4, compared with 45.2 last month, the second consecutive increase in the Jobs Index following six straight months of declines. Typically, declines in the feeling of job security follow real experiences in job loss, but this time confidence is improving even while unemployment is still growing nationally. Expectations for future employment show the strongest improvement: 32% of consumers say it is likely that they or someone in their family or friends will lose their job in the next six months, down from 42% in February.
- The RBC Expectations Index showed little change in May, holding at 34.0, up 1.6 points from the 32.4 observed in April. Currently, 36% of consumers believe the economy in their community will be stronger in the next month, while only 20% believe it will continue to weaken, roughly the same split as in April.
- The RBC Current Conditions Index currently stands at 45.0, up 9.2 points from last month?s 35.8. Consumers? confidence in both their local economy and their personal finances continued to show small improvements in May. The share of consumers who say that their personal financial situation is strong rose slightly this month, to 25%, compared with 23% in April.
- The RBC Investment Index currently stands at 49.6, up 4.8 points from April?s 44.8. While most of the increase in investment confidence stems from improvements in respondents? personal financial conditions, consumers are also showing growing comfort with investment and major spending. The number of consumers who say they are confident about investing for the future edged up to 28% this month, up from 24% last month.
?Better-than-expected news about the economy and corporate earnings is helping consumers to recognize that the worst is behind us,? said RBC Capital Markets Managing Director Larry Miller. ?Their growing confidence is seen in the continued improvement of the RBC Jobs Index, which suggests that consumers have less fear of losing their jobs. That may lead to a revival in spending, further driving economic recovery.?
I'll take great news like this any day, Sean Luce reports that LPG properties are entering May with figures that beat out April and you are not supposed to do that in a recession. This is a great piece of research to share with your clients as it is optomistic about how fast the economy will recover and shows graphically what consumers are feeling.