Consumer Sentiment Hits 12-Month High

New York, NY, Oct. 8, 2009--Propelled by diminishing concerns about current personal finances and job security, U.S. consumer sentiment reached a 12-month high in October, according to the most recent results of the RBC CASH (Consumer Attitudes and Spending by Household) Index.

Gains were made in every facet of consumer sentiment, with overall consumer confidence climbing 11.8 points.

As a result, the RBC Index stands at 51.8 this month, compared to 40.0 in September. This marks a 50-point improvement over the all-time low of 1.6 in February.

"Federal Reserve Chairman Ben Bernanke's assertion three weeks ago that the recession is over, together with a lack of negative financial news since then, have had a galvanizing effect on consumer sentiment," said RBC Capital Markets U.S. economist Tom Porcelli.

"Although the trends are moving in the right direction, consumer confidence remains fragile, and unexpected bad news about the economy or markets could once again send sentiment spiraling downward."

The RBC Index is a monthly national survey of consumer attitudes on the current and future state of local economies, personal finance situations, savings and confidence to make large investments.

The RBC Investment Index increased sharply this month, climbing 21.1 points to 58.0 - the highest mark for the Investment Index this year.

The RBC Current Conditions Index also reached a 12-month high in October as it climbed to 50.3, up 17.1 points from the September reading of 33.2.

Consumers' near-term economic outlook brightened for the third consecutive month, sending the RBC Expectations Index to 54.2, up 12.7 points from September's level of 41.5.