US consumer confidence data supports positive outlook for consumption growth

The Conference Board's index of consumer confidence came in well above expectations in September, posting a modest advance on the month. The headline index rose to 103.0 in September, from a revised August reading of 101.3. 

The unexpected move higher was driven by the present situation index, which rose to 121.1. Consumer expectations ticked down a touch to 91.0. The labor market differential, which measures the share of consumers who thought jobs were plentiful less those who thought they were hard to get, rose to 0.8. 

The September reading for this component is the strongest since January 2008 and suggests there is little remaining slack in US labor markets. Automobile and home buying plans also improved this month, supporting the overall signal from this morning's data of a strong US consumer. 

"The detailed survey results on business conditions, employment and income expectations show a bit of divergence amongst consumers at the end of Q3, but on balance the Conference Board data support the positive outlook for US consumption growth", says Barclays.