Employment Gains Fuel Consumer Confidence But Sustainability Hinges On Fiscal Cliff

The gains were broad-based from car dealers to hospitals to factories and construction sites. This means consumers are likely to spend more freely, adding clout to the three-year economic expansion during a time when the global economy has faced increasing uncertainty.
Private payrolls increased by 184,000, the largest number since February.
The Thomson Reuters/University of Michigan consumer confidence index rose in October to the highest level since before the recession began five years ago.
The growing caveat is the upcoming fiscal cliff. If that is not averted, predictions are that consumer spending will take a large enough hit to throw the economy back into recession.
If the tax law expiration can be avoided, it is believed the current gains can be sustained.


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