Consumer Comfort Reaches 16-Year High on U.S. Economic Optimism

Americans last week registered their strongest optimism in 16 years on more upbeat views about the state of the economy, their personal finances and the buying atmosphere, according to Bloomberg Consumer Comfort data released Thursday.

Consumers had reason to feel upbeat last week with stocks again reaching all-time highs and as Friday’s report on July employment confirmed the strong labor market remains intact. Record-high job vacancies help explain why lower-income Americans and the unemployed are more positive about their prospects. The latter group hasn’t been this optimistic since before the last recession. While the robust job market is offsetting the disappointment tied to lack of progress in Washington on health care and tax reform, geopolitical tensions related to North Korea represent a risk to consumer optimism.