Austin Consumer Confidence Ranks High

Consumer confidence in the Austin market is high.  The GDP, or gross domestic product is indicative of the strength of the country’s overall economy.  70% of the GDP is derived from the Consumer Confidence Indicator or CCI.  Simply stated, when consumer confidence is strong, the unemployment rate is usually low and people are more likely to purchase products. 

Historically, during our nation’s healthy economical periods, the CCI averaged 90 to 100; in the year 2000, our CCI peaked at 140.  As recent as 2009, the U.S. consumer confidence index was at 30 and anything below 60 is considered recessionary.

Since then, the nation’s CCI has risen to 82.3 (March, 2014)  and is still recovering from the recession, yet it's up 33 percent from 2013.  In Texas however, we have experienced unprecedented gains and our consumer confidence index was 109.2 in March 2014.

What does that mean for the Austin real estate market? A strong consumer report means that people are confident in the economy and believe that their standard of living is increasing.  With a steady market, more people are willing to make larger purchases and spend a greater amount on these purchases. It is a good time to make a real estate investment in Austin.

 

MONTH

Regional Index

U.S.  Index

March 2013

90.1

61.9

April 2013

106.3

69.0

May 2013

94.8

74.3

June 2013

98.9

82.1

July 2013

109.8

81.0

August 2013

90.3

81.8

Sept 2013

103.1

80.2

Oct 2013

89.1

72.4

Nov 2013

96.8

72.0

Dec 2013

104.7

77.5

Jan 2014

95.9

79.4

Feb 2014

112.3

78.3

March 2014

109.2

82.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*Includes Texas, Arkansas, Louisiana and Oklahoma (per source’s data groups) Information from the Texas Comptroller

 

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