Latest Numbers from the Consumer Confidence Index

It's almost impossible to ignore the holiday rush that comes at the end of the year when U.S. families come together to celebrate. Count on it. Even the "after" holiday shopping creates a surge to the economy that makes it easier to start a new fiscal year. So, how much did consumer expectations improve for the last month of the year?




Consumer Confidence:

For the last month of the fiscal year of 2013, the Consumer Confidence Index records a 5 year high with a reading of 78.1. The monthly economic report shows that public has fewer complaints about current business conditions; a decrease in the percentage of consumers who thought conditions would worsen supports the read.

Also, consumer expectations for the new fiscal year increased. Business should improve in the market. The public appears ready to begin another business year.


U.S. Employment:

However, economic reports on U.S. employment present a different story. Particularly, consumers did not believe they would see an increase in earnings regardless of the increase in jobs on the labor market.

Fewer employees expect raises. But, it may be a little easier to get a new job.



Issues:

With the increase to the federal minimum wage requirement, should we expect the index to continue to improving? Will we improve beyond the base year of 1985?


                                                                SOURCES:
                         -http://www.conference-board.org/data/consumerconfidence.cfm
                         -http://www.bloomberg.com/news/2013-12-31/consumer-confidence-
                                    index-in-u-s-increased-to-78-1-in-december.html
                                  
                                                                  KEYWORDS:
                                         economic report; consumer confidence; employment

How U.S. Spending on Leisure Affects the Economy

Whether it be a trip to a five-star hotel out-of-town or a hot ticket to a baseball game, consumer spending on leisure precisely gauges public desire for the arts and entertainment. Not only does expenditures on leisure, especially tourism, drive commerce, leisure spending also guarantees economic activity outside of the regular business cycle. It only works.




Consumer Confidence:

In regards to consumer confidence, leisure spending works as an instrument for measuring the health of the economy. Workers who can afford to take a day off for leisure maintain a proper balance between work and domestic life.


There are cities that are dedicated to improving tourism in respective areas. As a matter of fact, cities like Atlanta, Minneapolis, and San Francisco report an expansion in tourism after winning major sporting events. The Beige Book cites those three areas as trendy favorites.


The Economy:

Although the U.S. economy thrives on the health of its working-class citizens, the economy suffers when workers can't afford a day off. Quality of life declines.

 Reports on leisure spending show that in the Atlanta area alone, tourism creates more than 200,000 jobs. Professional and collegiate sports support the Hospitality industry in the city. Many of the jobs created by tourism come from sporting events.


Issues:

With the minimum wage increase in place, will workers increase spending on leisure? Will employers also increase vacation periods in the future? Is the Hospitality industry willing to cut back?






                                                                         SOURCES:
                            -http://www.bloomberg.com/news/2013-12-04/u-s-federal-reserve-beige-book-
                                              atlanta-district-text-.html
                            -http://www.federalreserve.gov/monetarypolicy/beigebook/beigebook201312.htm
                                                                          
                                                                         KEYWORDS:
                                                     consumer confidence; leisure; economy