The outlook from consumers improved for the month of November signaling that the concern about another recession is starting to disappear.

The Bloomberg consumer comfort index climbed to a minus 32 (which is the best reading since July) from minus 45 the previous month. The measure of current conditions climbed for the second week in a row for the period ending November 13, after sinking to an almost three-year low.

Household spending, which accounts for 70% of the economy, has picked up in the second half of the year even as stocks and confidence sank. The recovery may mean Americans are going shopping to relieve pessimism brought on by the jobless rate. The jobless rate actually was reported to drop below the 9 percent that it has been hovering around for the last year.

It sounds as though there has been pent up demand for products and that consumers are finally opening up their wallets again, although it’s too early to conclude that consumer sentiment has bottomed out.

An important indicator this week will be Black Friday and Thanksgiving sales. If consumers head out to shop this weekend despite the lack of an agreement by Congress on the debt crisis, it could mean that people are “over” the government stalemates that continue to haunt us, and are going to spend anyway. Holiday shoppers are likely to be looking for bargains again, and retailers will be competing for market share during this time frame.

Applications for unemployment decreased by 5,000 for the week as well, and is at the lowest level since April; in addition, the number of people on unemployment benefits fell to a three-year low.

Builders broke ground on more homes in October and construction permits climbed to the highest level since March 2010.

Finally, it was reported that confidence among men exceeded that of women, and Democrats are less pessimistic than Republicans for the third straight week.

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Questions on how it all relates to real estate? Please don’t hesitate to call me: 415-755-8919 or email: rsmith@ fhallen.com.

Have a Wonderful and Happy Thanksgiving!!!

Posted by:  Rick Smith