American consumers have spoken, and it appears that America is well on its way to becoming great again. The Bloomberg U.S. Consumer Comfort Index has only surpassed 50 six times in the past fifteen years. On March 5, the index jumped to 50.6 -- the highest its been since March of 2007.
Bloomberg Markets reports that the surge in the Consumer Comfort Index is the result of greater economic optimism and a more favorable buying climate, and cites near record highs of stock indexes and an invigorated job market as the driving factors behind the surge.
Since the inauguration of Donald Trump, the consumer comfort gauge has increased in five out of the last six weeks.
According to the Bloomberg Market's Austin Weinstein, respondents view the current buying climate as the most favorable in almost 15 years -- and America's newfound sense of economic optimism isn't due solely to Republican voters, either. Data shows that independents haven't been this upbeat about their prospects for the future since July of 2001.
Details of the latest Bloomberg report
The March 5 report reveals that sentiment rose in the heavily Republican strongholds of the South and Midwest, but fell in the liberal-heavy West and Northeast. Part-time employees indicated that they are the most confident they have been since October of 2015, and consumer comfort among married couples reached its highest level in a decade.
Bloomberg also reports that buying-climate measure rose to 44.5, its highest since April of 2002. Gauge of economy improved to 48.2, its highest since August of 2001.
Wall Street and the 'Trump Effect'
The markets have been exploding since Trump's inauguration -- a phenomenon some financial experts have dubbed "the Trump effect".
The Wall Street Journal recently reported that the Dow Jones Industrial Average rose by 4.02 percent during the first 30 days of Donald Trump's presidency, making it the best post-inauguration 30-day performance in 108 years. In March of 1909, the Dow Jones Industrial Average rose 5.07 percent during the first 30 days of William Taft's presidency.
