US consumer sentiment up

Is the worst over? While it's hard to see much great news out there, enough people are starting to think that at least it can't get worse.

The Thomson Reuters/University of Michigan preliminary August index of consumer sentiment increased to 73.6, the highest level since May, from 72.3 the prior month. The gauge was projected to be little changed at 72.2, according to the median forecast of 72 economists surveyed by Bloomberg.

After two months of sliding sentiment, August’s advance indicates consumers may be feeling the benefits of growing payrolls. Rising confidence raises the odds households can sustain July’s pickup in retail sales, which set the pace for stronger growth in the third quarter.

“People have said the worst scenario is not going to happen,” said John Silvia, chief economist at Wells Fargo Securities LLC in Charlotte, North Carolina. Confidence “seems to be stabilizing at a fairly low level, suggesting to me that consumer spending is going to continue. I don’t see a huge pick- up in growth.”

Though there's very little great news ahead, the economy could certainly get much worse if the repugicans  implement their plan of austerity. If one looks at what is happening in the UK or Spain, it's clear that the economy can get much, much worse with repugican tampering.