U.S. Outlook Optimism at Eight-Year High: Economy

The number of Americans saying the U.S. economy is getting better rose in March to the highest level since 2004 as a decline in claims for unemployment benefits offered more evidence of a labor-market recovery.

Thirty-four percent of respondents to Bloomberg’s monthly consumer expectations survey said the economy was improving, the largest share since January 2004. The pickup boosted the monthly expectations index to the highest in a year. Figures from the Labor Department today showed jobless claims decreased by 5,000 to 348,000 in the week ended March 17, the fewest since February 2008.

 

The best six months of job growth since 2006 are boosting the optimism of consumers whose spending accounts for 70 percent of the economy. Another report today showed the index of leading indicators rose in February by the most in 11 months, signaling the U.S. expansion will strengthen, helping to sustain global growth as China slows and Europe threatens to sink into a recession.

“The economy will be gradually building up momentum going forward,” said Omair Sharif, an economist at RBS Securities Inc. in Stamford, Connecticut. “We will be shouldering a little bit more of the burden given the slowdown in Europe and some degree of slowing in emerging markets.”

Americans are growing more optimistic as employment prospects brighten. Mark Eister, 47, of Kennesaw, Georgia, landed a job this month with Georgia Perimeter College as director of military outreach after sending out more than 400 applications since August. He retired from the U.S. Army in December.

“One week, the phone was ringing off the hook with job offers and interviews,” he said. “I feel like the economy is getting better. As I have talked to more employers and hiring managers, they seem ready to talk and bring people on board.”

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