Good news for small businesses across the nation: Consumer confidence is at its highest level in five years.
This news comes to us from, the Conference Board Consumer Confidence Index, which reports that for the second straight month confidence rose. That means that consumers are feeling better about their financial situations, and that means they’re more willing to buy. If you sell right to consumers, you may want to throw a small party.
The Conference Board Consumer Confidence Index, which had improved in April, increased again in May. The Index now stands at 76.2 (1985=100), up from 69.0 in April. The Present Situation Index increased to 66.7 from 61.0. The Expectations Index improved to 82.4 from 74.3 last month.
This is obviously a welcome change, and if this trend continues, we may be returning to pre-recession levels at long last. The caveat there is that these kinds of recoveries really do take years to come to fruition sometimes, and we’re still getting to that point. Considering we began the year with the fiscal cliff, health care worries and more, it’s still kind of remarkable that confidence is running so high.
One more quote on that point:
Says Lynn Franco, Director of Economic Indicators at The Conference Board: “Consumer Confidence posted another gain this month and is now at a five-year high (Feb. 2008, Index 76.4). Consumers’ assessment of current business and labor-market conditions was more positive and they were considerably more upbeat about future economic and job prospects. Back-to-back monthly gains suggest that consumer confidence is on the mend and may be regaining the traction it lost due to the fiscal cliff, payroll-tax hike, and sequester.”
Now the key is to sustain this momentum. With small business lending demand rising, it’s clear that businesses are feeling good about the current climate, but ensuring consumer confidence remains high is the only way to keep things humming.
How will your small business help with that effort?