Rosy outlook hangs on for many

Associated Press

NEW YORK

Americans are holding onto 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 held nearly steady at 70.2, according to the New York-based private research group The Conference Board. February’s reading, revised upward to 71.6, was the highest it’s 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 still is 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 last 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.”

Johnson is like many Americans, who are more upbeat as the job picture improves. The economy has added an average of 245,000 jobs per month from December through February. And the unemployment rate has declined to 8.3 percent, the lowest in three years.

Adding to that, the stock market has risen at a healthy pace this year, making many Americans wealthier than they have been in the past few years. In fact, the Standard & Poor’s 500 index came close to a four-year high Monday.