After declining throughout much of 2009, American consumer confidence improved sharply this month, returning to levels not seen since the financial crisis began in September 2008, according to the recent results of the RBC Consumer Attitudes and Spending by Household (CASH) Index.

Driven by the largest single-month gain in expectations for jobs since the inception of the Index eight years ago, the RBC Index for January 2010 stands at 58.3, up 19.3 points from its December 2009 reading of 39.0.


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Highlights of the survey results include:

  • Americans' confidence in the job market improved dramatically this month, as evidenced by a 16.5 point increase in the RBC Jobs Index to 67.9—the largest single-month gain ever observed in the Index. Declining job losses correspond with consumers' sense of job security. According to the Index, 30% of consumers feel more confident about their jobs. Likewise, concern that job losses are looming has declined over the previous month. Personal job loss experience improved in January: 62% of consumers reported job loss in their immediate circle, compared with 71% in December.
  • Consumers' economic outlook also brightened considerably this month, sending the RBC Expectations Index to 67.6, up 27.2 points from December's 40.4—and the highest level since September 2008. An increase in consumers' expectations for both their local economies and their personal finances, coupled with gains in job security, resulted in the overall Expectations Index improving: 38% of consumers say the economy in their community will be stronger six months from now (compared with 35% last month), while only 15% say it will continue to weaken (19% last month).
  • Fueled by a striking increase in consumer optimism, the RBC Current Conditions Index also reached a 15-month high in January as it climbed to 51.6, up 14.6 points from last month's 37.0. The percentage of consumers rating their personal financial situation as strong increased to 25% this month from 21% in December. The share of Americans rating their personal financial situation as weak held steady at 32%, the same as in December.
  • Mirroring the improvement in the overall index and the current conditions index, the RBC Investment Index climbed 11.2 points this month to 58.1, compared with 46.9 in December. Consumers who feel confident about investing for the future held steady in January at 33% more confident, compared with 35% last month. Consumer comfort levels for investing in the stock market also edged up, with 37% saying now is a good time to invest in the stock market, compared with 32% in December. Americans are also feeling more confident about investing in real estate: 44% said they believe the next month will be a good time to buy real estate, compared with 41% who said the same in the previous month.

About the data: The RBC Index is a monthly national survey of consumer attitudes on the current and future state of local economies, personal finance situations, savings, and confidence to make large investments. This month's findings are based on a representative nationwide sample of 1,002 US adults polled from January 7-10, 2010, by survey-based research company Ipsos Public Affairs. 

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Consumer Confidence Climbs in Jan.: RBC

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