By Andrew L. Jaffee

The Conference Board issued its latest Consumer Confidence Index reading this morning, showing American sentiments towards the economy are near a 4-year high. This adds to string of positive economic news. From CNNMoney.com:

U.S. consumers perked up in March, sending an index of sentiment toward the economy to its highest in almost four years, according to a report released Tuesday.

The Conference Board, a private research firm, said its measure of consumer sentiment spiked to 107.2, up from a revised 102.7 last month and well above Wall Street’s median forecast for a slight gain.

The survey’s components corroborated general perceptions about the current economic environment, showing optimism about the present but concern about the future.

I would ascribe the “concern about the future” to the usual human nervousness about what might happen, as most economic indicators are positive.

Overall, the U.S. economy has created 5 million new jobs since August 2003; gross domestic product grew 3.5 percent in 2005; worker productivity has increased at a 3.4% annual rate since 2001; manufacturing activity has increased for 33 consecutive months; inflation has remained at a tame 2.1% over the last year; personal income has grown 8.2% since 2001; and, the U.S. is at or near full employment (those looking for work are finding work).

American orders for durable goods, reported Friday, jumped 2.6% in February, the fourth increase over the last five months. Durable goods are defined as products with a normal life expectancy of three years or more, like furniture, aircraft, computers, and automobiles.

Back to the Goldilocks economy: not too hot and not too cold, i.e., inflation and growth are generally in balance.

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Related: United States, Economy

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