Consumers Grow More Upbeat, Nudging Up Sales at Retailers
With oil prices easing and the uncertainties of the election past, U.S. consumers show early signs of becoming more confident about the economic outlook.</br></br>The University of Michigan's consumer-sentiment index -- based on surveys conducted before and after the Nov. 2 election -- rose to a reading of 95.5 from 91.7 in October and 94.2 in September. In addition to the drop of oil prices below $50 a barrel and the resolution of a bitterly fought presidential campaign, the government reported recently that hiring in October was stronger than expected, all factors that should underpin confidence.</br></br>"Consumers will remain spending-minded," said Richard Curtin, the Michigan economist who oversees the confidence survey. He said the recent decline in oil prices was probably the key factor behind the improvement.</br></br>Households were spending-minded in October, though their pattern of spending showed signs of changing from the month before. The U.S. Commerce Department said retail sales in October rose 0.2% from September on a seasonally adjusted basis, after a 1.6% jump the month before. The back-to-back gains put household consumption on solid footing going into the holiday season.</br></br>One retailer that enjoyed steady gains in spending was Men's Wearhouse Inc., a Houston seller of men's suits with an average price of about $280. The retailer reported a hearty 8.9% increase in domestic same-store sales last month from a year earlier. "Our business is kind of to the masses, to the middle-market kind of guy. I think he's doing fine," said Neill Davis, chief financial officer.