(Bloomberg) — Consumer confidence climbed last week to match the second-highest level since July 2007, propelled in part by gains among lower-income earners and job seekers as the labor market improves.
The Bloomberg Consumer Comfort Index rose to 45.5 in the period ended March 22 from 44.2 the prior week. Measures of the economy, buying climate and households' financial well-being all improved.
Spirits brightened for those making less than $50,000 a year in wake of bigger February job gains in services that include the retail and restaurant industries. More confidence about finances signals consumers may be inclined to step up purchases and drive the economy after a projected slowdown in the first quarter.
The index was "bolstered by improved ratings of personal finances, gains among women and improvement among lower- and lower-middle income Americans that may signal a widening recovery," Gary Langer, president of Langer Research Associates LLC in New York, which produces the data for Bloomberg, said in a statement.
A strengthening labor market and still-cheap gasoline are also delivering a boost to household spending, which accounts for about 70 percent of the economy.
Fewer Americans than forecast filed applications for unemployment benefits last week, a Labor Department report showed Thursday. Jobless claims dropped by 9,000 to 282,000 in the period ended March 21, the lowest level since mid-February.
