Another benefit of the federal government reopening: Consumers are likely to be more confident during the holiday season, Bloomberg reported.
The government shutdown that ended yesterday helped push expectations for the economy to a two-year low in October, according to the Bloomberg Consumer Comfort Index released today. The gauge read at minus 31, down from minus 9 the previous month. The gauge ranges from 100 to minus 100.
That sentiment, though, could improve quickly. Analysts say that the debt-ceiling deal will relieve consumers and likely make them more confident. The last-minute deal could also ease fears in future debt limit talks.
"We've gone through this disaster a few times now and at the end of the day, disaster was averted," said Jim O'Sullivan, chief U.S. economist at High Frequency Economics, in an interview with Bloomberg.
But another comforting indicator - the performance of large banks - might be misleading, CNNMoney reported.
On Wednesday, Bank of America reported a net income of $2.5 billion in the third quarter and shares rose. Overall, the nation's four largest banks earned nearly $11 billion. But the numbers might not be as good as they appear.
Banks have increasingly used an accounting technique that has drawn criticism from analysts. They have loaded up on loan reserves, or funds that can cover losses, and now say they don't need as much money in those accounts. That money counts toward the bottom line. The earnings from the reserve releases have grown much faster than the banks' regular profits.