Consumer Optimism Up Sharply, Survey Finds: Spending Rose in October, Separate Report Shows
With signs the U.S. economy is improving and the uncertainty of the presidential election removed, consumer sentiment improved sharply early this month, scoring the biggest gain since the end of the Persian Gulf War, according to the University of MichiganÛªs monthly survey of consumer attitudes released yesterday.</br></br>Even before the Nov. 3 election, Americans were telling the universityÛªs telephone surveyors that current economic conditions were looking up, and they were saying the same about their expectations for the future.</br></br>Politicians, business executives and economists have agreed in recent months that whatever the actual shape of the economy, conditions were made even more difficult because consumers, worried about their jabs and incomes, were holding back on spending. The same uncertainty affected businesses in their spending plans.</br></br>"The fundamental restraint on the economy is the confidence factor," said Federal Reserve Board member John LaWare a few days ago.</br></br>One reason for the lack of confidence, LaWare said, "has been the political uncertainty that has hung over the economy during the presidential campaign. I am not sure but that whichever side won, there would have been some improvement."