Consumer Confidence Improves to 2006 Average

Sept. 26, 2006 — -- Consumer confidence has strengthened to match its 2006 average, fueled by improving ratings of the national economy and the buying climate alike.

The latest ABC News/Washington Post Consumer Comfort Index stands at -12 on its scale of +100 to -100, up seven points in the last month. The index now matches its average so far this year, but remains below its long-term average, -9 since late 1985.

Rapidly declining gas prices likely are helping. Gas now averages $2.38 a gallon, down 66 cents since early August. But gasoline isn't the sole factor in views of the economy, and the CCI's been better at other points this year, even when gas was costlier.

The index is based on Americans' ratings of the current national economy, the buying climate and their personal finances. This week 39 percent say the economy's in good shape, up six points in the last month; and 37 percent call it a good time to buy things, up five points since late August.

Positive ratings of personal finances, at 56 percent this week, have held steadier in the last month, but unlike the others were better, 61 percent positive, earlier this summer. All are within a point of their long-term averages since this weekly poll began.

TREND -- The index has ranged this year from a high of -7 in March and April to a low of -19 in May and late August. Its all-time high was +38 in January 2000; its record low, -50 in February 1992.

GROUPS -- As usual, the index is higher in better-off groups. It's +33 among higher-income Americans while -62 among those with the lowest incomes, +5 among college graduates while -46 among those who haven't finished high school, -8 among whites but -39 among blacks and -2 among men while -20 among women.

The CCI's greatest recent gains have been in the South, and it's much better both in the South (-1) and West (-2) than in the Northeast or Midwest (both -26).

Here's a closer look at the three components of the ABC/Post CCI:

NATIONAL ECONOMY -- Thirty-nine percent of Americans rate the economy as excellent or good; it was 37 percent last week. The highest percentage of Americans rating the economy as excellent or good was 80 percent on Jan. 16, 2000. The lowest was 7 percent in late 1991 and early 1992.