The Conference Board’s question on confidence is about income and not wages, according to Lynn Franco, who directs surveys at the research organization. That might skew results slightly in favor of stock-market investors and entrepreneurs who are more likely than wage earners to see blue skies ahead, even with employer compensation remaining “the primary source for most folks.”
Whatever the reason, don’t dismiss consumer expectations, said George Selgin, director of the Center for Monetary and Financial Alternatives at the libertarian Cato Institute.
“These sentiment surveys are at least as reasonable as any economist’s predictions,” Selgin said. “Including mine.”
This article was provided by Bloomberg News.