New reports indicate that the public’s overall level of optimism about the U.S. economy is on the rise, particularly among consumers. This is considered to be critical, as consumer spending constitutes nearly 70 percent of economic activity in the United States.
One positive indicator is an increase in the Consumer Confidence Index, which rose considerably from 61.3 in August to 70.3 in September. The Index – maintained by The Conference Board, a nonprofit business research organization – is updated regularly, based on the results of a monthly Consumer Confidence Survey.
In a press release, Lynn Franco, director of economic indicators at The Conference Board, broke down some of the specific factors that caused the noteworthy nine-point increase in the Confidence Index.
“Consumers were more positive in their assessment of current conditions, in particular the job market, and considerably more optimistic about the short-term outlook for business conditions, employment and their financial situation,” said Franco. “Despite continuing economic uncertainty, consumers are slightly more optimistic than they have been in several months.”
This increase in confidence could spur an expansion of some companies’ hiring plans, on the belief that consumers, who are feeling more financially secure, will increase their spending on a number of goods and services that they have been going without during the economic downturn.
However, the recovery remains fragile and no company can afford to waste time and money on a new hire that won’t work out in the long term. This is particularly true with regards to filling high-level positions. Working with a recruitment firm can aid a business in conducting a fast, effective executive or financial professional search.