One Measure of Consumer Confidence Spikes Higher

New York, NY, Sept. 12, 2008--Consumer confidence has improved heading into fall, due partly to dips in gas prices and excitement over the presidential race, according to the Royal Bank of Canada Consumer Attitudes and Spending by Household Index.

The index rose for the second straight month in September, jumping 35 points to 69.2. The growth was led by an 81 point spike in Americans’ expectations for the future. Gains also were made in every other facet of consumer sentiment, including assessments of current conditions, investing and job security.

"The dramatic rebound in consumer sentiment this month is as startling as some of the developments in recent weeks," said T.J. Marta, Economic and Fixed Income Strategist for RBC Capital Markets, in a news release.

"The prices of oil and gasoline are down 30 percent and 12 percent, respectively, from their peaks in July. The bailouts of Fannie Mae and Freddie Mac announced during the polling period represent a sweeping and historic move, which many hope will significantly mitigate the housing correction. In addition, this month's survey occurred immediately after the Republican convention and just a week following the Democratic convention, both of which have generated hope for change in Washington."

The RBC CASH 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.