NEW YORK —
Americans are holding on to a rosier view of the U.S. economy as they focus on the good in a flood of mixed economic news.
Gas prices are up, but the stock market is too. Home prices are down, but so is unemployment.
“The resilience suggests that jobs remain a more important concern for consumers than gasoline prices,” said Mark Vitner, an economist at Wells Fargo Securities.
Gas prices have risen almost every day this month, yet the Consumer Confidence Index for March slipped only slightly to 70.2, according to the Conference Board, a New York-based private research group. February’s reading, revised upward to 71.6, was the highest it had been in a year.
Consumer confidence is widely watched because consumer spending accounts for 70 percent of economic activity. Confidence has been fragile since the U.S. recession began in late 2007, despite several short-lived spikes.
Now, it appears to be rebounding as Americans seem to be looking at the proverbial glass as half-full despite continued weaknesses in the economy, including rising gas prices.
The measure is still significantly below the 90 reading that indicates a healthy economy — a level the index has not been near since the recession began in December 2007. But the current reading is a long climb from the 40 figure it hit in October, not to mention its all-time low of 25.3 in February 2009.
Confidence levels are closer to a stable economy than not, with Americans feeling more confident than they have in a long time.
Nicklas Johnson, a software engineer who has been with the same company for 14 years, said recruiters are starting to solicit him for jobs. That’s making him more confident about spending a little more despite the fact that gas prices are rising and the value of his home has plummeted.
“I would be lying if I said gas prices aren’t in the back of my mind,” said the 36-year-old, who lives in San Mateo, Calif. “But I’m very optimistic that employment is rising. … I’m more encouraged about improvements in the job market than discouraged about inflation.”
The biggest threat to consumer confidence is still gas prices. The consumer-confidence survey, conducted from March 1 through March 15, showed shoppers’ worries about inflation rose to the highest level in about a year, alongside a rise in gas prices.
The national average for gas was $3.74 a gallon at the start of March, up from $3.52 on Feb. 15. Gas prices rose 8 cents during the first two weeks of March, the period measured by the consumer survey. Since then, it has risen another 8 cents to $3.90, which is less than a dime away from last year’s high reached in early May. The record high of $4.11 was set in July 2008.
