Consumer Sentiment Rises More than Expected

Consumer spending and unemployment are the two sectors that seem to remain in doubt with regards to the broader economic recovery of the country - at least in the near term. The housing market is showing signs of life and manufacturing has also seen a boost, both as a result of specific government stimulus packages. The credit markets are still a bit wary, but it's logical to expect some sluggishness as they attempt to re-define and re-implement lending standards.

The consumer sentiment index is a largely subjective analysis of how optimistic U.S. consumers are about the health of the economy and their future prospects for growth and financial success. The overall numbers are still very poor relative to the numbers required to indicate a healthy economy, but they are finally moving in the right direction. With mostly positive economic data coming out of Washington and Wall Street, many people are starting to feel as though there is some light at the end of the tunnel.

Of course, these early signs of optimism must be taken cautiously, as it would only take a few negative reports to offset any recent gains. Home prices experienced their first quarterly gain in nearly 3 years, with overall home values now roughly comparable to where they were in 2003, just before the worst of the real estate boom. With fundamental aspects of the economy beginning to stabilize, the Obama administration now faces its toughest policy challenge to date, which is trying to get some sort of meaningful health care reform through Congress. Well, that and mountains of debt that will likely suffocate the country over the course of the next two decades.