Consumer confidence soars to second-highest level since 2007
Consumer confidence is soaring.
The preliminary reading on consumer confidence from the University of Michigan came in at 95.9, topping expectations for a reading of 94.0.
This is the second highest reading since 2007.
Expectations were for the reading to come in at 94.0, up from 93.0 at the end of February.
The report also showed that consumers' assessment of economic conditions and expectations for future conditions rose from March.
The inflation outlook for consumers declined for both a 1-year and 5 to 10-year view.
In the report, economist Richard Curtin said:
Consumer optimism rebounded in early April to its second highest level since 2007. More importantly, consumer optimism has recorded a higher average level during the last five months than anytime since May 2004. While there were some important exceptions, the cumulative improvement in a broad range of economic assessments are now comparable to the peak levels recorded in the mid 2000's (although still well below the peaks in earlier decades).
The only drag on the report was future income gains, with Curtain noting that while this outlook from consumers has improved, it still remains "quite weak."
On the Fed, Curtain noted that, "few consumers now anticipate that the Fed would raise rates enough to affect their current purchase plans," and added that personal consumption expenditures are still expected to rise by 3.3% in 2015.
Here's the chart of booming consumer confidence.