Summary
The recovery will continue to be slow. The up tick in consumer confidence is mainly in the repair and replacement sectors. Big ticket items must wait some time.
Analysis
Consumer confidence historically has a strong connection to housing and new car sales trends. However, we have entered a new period in our economy. Home improvement stores such as Home Depot appear to be seeing stronger business. Likely car repair businesses are as well. Earlier this year there was news that used car sales were growing. It would appear, therefore, that there are some bright spots in those business areas indicating the improvement in consumer confidence. It has been said that this economic recovery will be "U-shaped" rather than "V-shaped." In other words, it is going to take some time before the consumer reenters the big ticket market. New homes and cars will have to wait. Meanwhile, continue to look for growth in the repair and replacement sectors for some time to come.
