Originators to find more confident clients as consumer sentiment lifts

by Adam Smith26 Jul 2013

Originators may find themselves dealing with more confident clients, as consumer sentiment has hit its highest level in six years.

The Thomson Reuters/University of Michigan index on consumer sentiment has risen from 84.1 in June to 85.1, beating expectations for a reading of 84.

Thomson Reuters said the rise saw the index reach its highest level since July 2007. Originators could be in for a windfall as increasingly optimistic consumers feel more comfortable with spending.

"This high level of confidence points toward a continued expansion of consumer spending in the year ahead," survey director Richard Curtin said.

But the dark clouds surrounding the silver lining may be the expectation of interest rate rises. Sixty-eight percent of consumers said they expected rates to rise in the coming year, up from 55% in June, Reuters said. The result represents the largest proportion of consumers to expect rate rises since August 2006.


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