The University of Michigan (UoM) released its preliminary monthly consumer confidence report this afternoon revealing solid growth in outlook among consumers. This report is a composite index based on surveyed consumers which asks respondents to rate the relative level of present and future economic conditions.
The news agency Reuters wrote that this month's higher than expected reading was likely due to a jump in non-farm job growth, as reported last Friday. Though other articles have disputed the validity of the NFP data due to its variant internals, consumers across the United States do appear to favor a more optimistic stance as jobs are reported to be on the rise.
The US dollar continued to find support today as the American consumer price index ( CPI ) was released commensurate with market expectations and as European GDP figures were largely bullish. The EUR bounced back in earlier trading, but this afternoon's CPI and outlook data helped the greenback get back on course for stable growth.
Despite high food and gas prices, consumers have historically rated their financials through a lens of job growth. An expanding jobs market eases tensions among those seeking work or advancement. Today's preliminary UoM consumer confidence reading was largely a reflection of the job growth revealed in last week's NFP, according to analysts.