Consumer confidence – one of the biggest drivers of economic growth and a key factor in franchise and small-business investment – jumped to a new post-recession high this month, and hitting its highest level since October 2007.
As confirmation of that confidence, the U.S. Gross Domestic Product reported 4% annualized growth for the second quarter, following a 2.1% drop in Q1 that was widely attributed to harsh weather.
GDP UP 4%: Wednesday’s report from the U.S. Commerce Department was an upside surprise, far better than the 3% that some analysts predicted. The New York Times breaks down the numbers with some caveats, while Inc. magazine explains how it’s particularly good for startups and new businesses.
CONSUMER CONFIDENCE: The monthly Consumer Confidence index from the Conference Board on Tuesday rose to 90.9 in July, up from 86.4 in June. The index started at 100 in 1985.
“Consumer confidence increased for the third consecutive month and is now at its highest level since October 2007, said Lynn Franco, the board’s director of economic indicators. “Strong job growth helped boost consumers’ assessment of current conditions, while brighter short-term outlooks for the economy and jobs, and to a lesser extent personal income, drove the gain in expectations.”
“Recent improvements in consumer confidence, in particular expectations, suggest the recent strengthening in growth is likely to continue into the second half of this year.”
Read more from the Conference Board and MarketWatch.