Consumers’ propensity to spend their hard-earned greenbacks on consumer electronics is on the rise.
According to the latest monthly index from the Consumer Technology Association (CTA), consumer expectations about CE spending rose 1.6 points this month to a score of 89.5, which is 2.4 percentage points above the year-ago level.
CTA chief economist Shawn DuBravac attributed the uptick to growing consumer confidence in the economy, and the outlook for rising wages and greater job security.
“Perceived strength in the overall economy and, specifically, perceived strength in income growth and labor market stability are likely supporting sentiment around tech spending,” DuBravac said. “Consumers are taking those positive economic signs as indication that it could be a good time to make purchases. Growth in durable goods spending thus far this year is broadly consistent with this behavior.”
CTA’s rising Index of Consumer Technology Expectations (ICTE) parallels its consumer sentiment read on the greater U.S. economy (Index of Consumer Expectations, or ICE). That report shows an increase of 3.1 points this month to a score of 185.2 — more than 10 points higher than last year.
Both indexes are based on consumer surveys.
But while shoppers are showing “renewed optimism when it comes to their own jobs and their financial well-being,” DuBravac also warned of “potential warning signs worth watching,” based on some respondents’ concerns over the long-term health of the economy.