Brighter days ahead?

Consumers are feeling better about the economy and that’s boosting confidence and sales. According to the most recent Conference Board release, consumer confidence is up 5.6 percentage points to 57.9 (1985=100) from March’s 52.3 reading.

Retail sales are improving also. Per the U.S. Department of Commerce, total retail sales (which include autos, gasoline stations and restaurants) for March increased 1.6%, seasonally adjusted, over February and 7.6% over March, a year ago. And that’s not all. Furniture was one of the categories that saw one of the biggest increases. The report shows furniture and home furnishing stores increased sales by 1.5%, seasonally adjusted, over the previous month and 4.2% over the previous year.

“It’s evident consumers were feeling much better about the economy and their finances last month,” said Rosalind Wells, chief economist for the National Retail Federation. “Pent up demand combined with an early Easter and warm Spring weather significantly boosted consumers’ moods and retail sales.”

Consumer confidence appears to spilling over into consumers’ home remodeling and renovation plans also.
According to the latest American Express Spending & Saving Tracker survey, more than three-fifths of U.S. consumers plan to remodel or renovate their homes in 2010 which could mean more sales for this industry as consumers plan to spend an average of $6,200 to improve their home’s appearance, indoors and out.

Pamela Codispoti, American Express senior vice president and general manager of Cardmember Services said, “It’s clear from this month’s survey findings that Americans’ most prized possessions are their homes and they are committed to continuing to enhance its appearance and value in spite of the softer real estate market.”

And though the housing crisis continues to be an issue, things seem to be improving on that front as well. According to Lawrence Yun, National Association of Realtors chief economist, regarding existing home sales, “Sales have been above year-ago levels for nine straight months, and inventory has trended down from year-ago levels for 20 months running.” He also stated, “With home values stabilizing, a revival in home buying confidence will likely help the housing market get back on its feet even as the tax credit impact disappears.”

So, it seems like a long-awaited turnaround is just around the corner. What about you? Have you seen an improvement in sales for your business?