Consumer confidence took a surprise jump Tuesday, after investors and analysts predicted a decline in the measurement.
The index, which is compiled by a research group called the Conference Board, hit a rating of 53.5 – up from the 51.0 posted in July and above analysts’ predictions of 50.5.
Consumer confidence may be one of the keys in reviving the economy after the financial collapse. Increased consumer confidence could mean an uptick in car sales, which would make lenders more willing to take on bad credit car loans.
Although the modest gain was a good sign for investors and provided a small boost to the stock market, the index is still far below the numbers analysts would like to see it at, with one investor telling CNNMoney that a 90 indicates a stable economy.
“There’s a feeling that we are moving forward slowly, but the opportunities are down the road, they’re not right now,” Daniel Penrod, senior industry analyst for the California Credit Union League, told the news source. “People are looking six to 12 months ahead.”
A recovering economy, no matter how slight, is good news for those with bad credit. During the financial collapse, many institutions curtailed car loans to subprime lenders in response.