With inflation creeping higher, they are also unlikely to change their bias toward higher rates as well. Lower mortgage rates are leading to improved attitudes towards home buying. Consumer confidence increased to 141.9 in September from 140.8 in August according to the Conference Board. The present situation index rose to 182.9 from 181.3 while the expectation index rose to 114.7 from 113.9. Little has changed on the consumer front.
People remain very upbeat about the economy and the job market.
Volatility has increased in recent months, but there is no mistaking a very strong uptrend in nondefense capital goods orders and shipments. This implies that PDE will continue to be strong, helping to support continued productivity growth. The final revision to second quarter GDP growth resulted in slightly stronger growth and noticeably weaker inflation. Other economic growth revisions were minor. Weekly jobless claims fell a surprising 24,000 to 287,000.