Consumer Confidence Reaches Highest Level Since Sept. 2008

More signs that the long awaited economic recovery is picking up speed - April's Consumer Confidence Survey, conducted monthly by The Conference Board, rose to 57.9, up more than 5 points from March's 52.3. April's reading is the highest Consumer Confidence level since September of 2008 (61.4).

Chart Courtesy of The Conference Board

Overall the survey recorded positive appraisals of current business and labor market conditions, as well as a positive outlook about the future. The percentage of consumers expecting business conditions will improve over the next six months increased to 19.8 percent from 18.0 percent, while those expecting conditions will worsen declined to 12.6 percent from 13.6 percent.

The survey is based on a representative sample of 5,000 households.

CEO Confidence Down - BUT Hiring to Pickup

CEO confidence as measured by the Conference Board CEO Survey declined from 64 in the fourth quarter of 2009 to 62 for the first quarter of 2010. A reading of more than 50 points reflects more positive than negative responses.

CEOs also indicated uncertainty about the future, with 52% of business leaders expecting economic conditions to improve over the next 6 months, down from 58% last quarter. On the bright side: More than 30% of CEOs expect an increase in employment levels in their industry, up from less than 3% a year ago.

Also from the Conference Board; the Employment Trends Index (ETI) rose in March for a seventh consecutive month. The index is now at 94.4, up from February's 93.7. The index is up 5.5% versus a year ago, and over the past three months, all eight components of the index have been improving.

The ETI measures:
•Percentage of Respondents Who Say They Find "Jobs Hard to Get" (The Conference Board Consumer Confidence Survey®)

•Initial Claims for Unemployment Insurance (U.S. Department of Labor)
•Percentage of Firms With Positions Not Able to Fill Right Now (© National Federation of Independent Business Research Foundation)
•Number of Employees Hired by the Temporary-Help Industry (U.S. Bureau of Labor Statistics)
•Part-Time Workers for Economic Reasons (BLS)
•Job Openings (BLS)
•Industrial Production (Federal Reserve Board)
•Real Manufacturing and Trade Sales (U.S. Bureau of Economic Analysis)

More Positive Economic News...

The Conference Board's Leading Economic Index (LEI), increased .01 percent in February, following a .03 percent gain in January, and a 1.2 percent rise in December, indicating a slow but steady path towards a summer recovery.

Courtesy of The Conference Board

"The LEI for the U.S. has risen rapidly for almost a year" said Atamon Ozyildirim, Economist at the Conference Board. Mr. Ozyildirim continued, "As the economy moves from recovery into the early phases of an expansion, the leading economic index points to moderately improving...conditions for the near term."

I haven't heard the phase "expansion" in a couple of years... Happy Friday!