While I'm actually in a doomy mood, I'm just not up to posting something appropriately pessimistic. Instead, I'm going to update
Good economic news from Michigan universities with the latest good economic news. I'm in need of cheering up after tonight's election results.
I begin with the national picture from the University of Michigan:
Consumer sentiment in October highest in seven years, posted October 31, 2014.
ANN ARBOR—Consumer confidence posted its third consecutive monthly gain in October, rising to its highest level since July 2007, according to the Thomson Reuters/University of Michigan Surveys of Consumers.
Conducted by the U-M Institute for Social Research (ISR) since 1946, the Surveys monitor consumer attitudes and expectations.
"Consumers have been gradually regaining their economic footing in the past several months, with confidence rising to the highest level since the start of the Great Recession," said Richard Curtin, director of the surveys. "This is not the first time such a strong rebound has occurred, but this time it appears to have more forward traction. Consumers have not overreacted to the negative news of a global slowdown or Ebola, nor to the positive news of lower gas prices. Instead, consumers have kept their focus on improved job and wage prospects. Finally, five years after the start of the recovery, consumers have begun to adopt the expectations and behaviors that have driven past expansions."
The October gain was due to improved personal finances as well as a more favorable outlook for the overall economy, according to Curtin. Indeed, consumers reported the most favorable personal financial expectations as well as the most positive year-ahead outlook for the national economy in the past seven years. What the survey did not find was any negative impact on confidence from the global economic slowdown, military conflicts, or Ebola. None of these issues was mentioned by more than a few respondents; instead, respondents emphasized improved wage and employment prospects due to a stronger economy. Gains in holiday spending are expected to be the best in several years, benefiting from higher confidence as well as falling gas prices at the pump.
Trick or Treat! Hey, a treat!
Next, Wayne State University with the local economic picture in
Southeast Michigan Purchasing Managers Index remains strong in October, finishing at 54.7 , posted November 3, 2014.
DETROIT— The Southeast Michigan Purchasing Managers Index (PMI) for October is 54.7, down slightly from September’s 59.4. A PMI value above 50 generally suggests economic growth.
“We continue to enjoy a bright economic outlook, said Timothy Butler, associate professor of supply chain management at Wayne State’s School of Business, who interpreted this month’s results. Key indicators for growth include the New Orders Index, the Finished Goods Inventory Index and the Employment Index. In fact, the Employment Index has remained over 50 since July 2012.”
Purchasing managers’ confidence continues to be up, with 93.4 percent believing the Southeast Michigan economy will remain stable or become more stable over the next six months, while only 6.7 percent anticipate a less stable economy.
Respondents reported prices were up for resins, aluminum and steel for the month, while oil and copper were down in price. They also noted the Ebola crisis disrupted air transportation and reported travel cost increases.
Professor Farnsworth approves in general, although I'm sure that he's not too keen on Ebola.
Follow over the jump for economic reports from Florida, Colorado, and Georgia.