Lynn Franco Remains Quotations

Growing optimism about the overall health of the economy continues to bolster consumers' short-term outlook. But consumers' assessment of current conditions, which strongly hinges on improvements in the labor market, remains both weak and volatile.

Whatever stock market effect we've had probably was felt in the present conditions index, but the overall index remains strong, ... The boost in optimism, coupled with tax refunds, should continue to fuel spending.

While overall confidence remains relatively positive, the latest reading reflects growing concerns that U.S. economic growth may be slowing down. And, while the outlook for corporate profits remains optimistic, rising interest rates and oil prices may curb business leaders' projections.

While the purchasing intentions of consumers have not changed and remain quite upbeat, it remains to be seen whether these current attitudes translate into actual purchases.

While the Index remains below its pre-Katrina levels, the shock of the hurricanes and subsequent leap in gas prices has begun wearing off just in time for the holiday season. Despite this latest boost in confidence, holiday spending will be driven by the bargains consumers have come to expect.