Consumer Confidence Notches Post-Recession High; Another Strong Holiday Season in Reach for Retailers

Consumer Confidence Notches Post-Recession High; Another Strong Holiday Season in Reach for Retailers..

Soaring confidence elevates consumption. Strong consumer spending continued in August, boosting core retail sales 5.9 percent on an annual basis and surpassing the previous four-month average of 5.8 percent. A healthy job market and steadily rising wages remain key drivers of consumer confidence, pushing it to its highest level this cycle. With optimism climbing, consumers are making more discretionary purchases, benefiting electronics and appliances retailers as the sector recorded 4.1 percent annual growth. Prior to the past 12 months, this sector has witnessed sporadic growth, contributing to a negative 10-year average. Clothing retailers also posted strong gains last month, logging a 6.4 percent increase compared with the 10-year average of 2.1 percent. Off-price clothing retailers like Ross and TJ Maxx have headlined the sector’s recent surge in sales...