The Consumer Confidence index is a "relative" survey and it is released each month. 

"Relative" means that the value each month is quoted in a "relative" value to when the survey was first conducted in 1985 (which is assigned a value of 100.0).

This month's Consumer Confidence survey registered a 98.9, meaning consumers are a little less confident about the economy than they were in 1985.

Today's reading doesn't translate into anything economic so it's not that big of a deal to regular people just going about their lives.  But we compare it to last month's reading of 85.2, the stark difference is a big deal. 

A month-to-month jump of that magnitude is huge.

See, after last month's abysmal reading, the Chicken Littles were out on the TV talking about recession and how the U.S. is hurting.

• "Gas prices are too high!" 
• "Hurricanes ruined our economy!" 
• "My pay is decreasing!"

But this month, afterthe Consumer Confidence Survey, everything's suddenly fine.  The talking heads are even optimistic as we head into the Holiday Shopping hom stretch. 

It's completely irrational.  Let's look at the notes comparing this month to last: 

1. Gas prices are down (but are still high)
2. Hurricane-impacted areas haven't rebuilt and are facing more setbacks
3. Real wages are decreasing for American workers

Really, nothing has changed.  The only reason why the Consumer Confidence survey rebounded so sharply is because gas prices fell this month.  Period.  This reminds us that Consumer Confidence is an emotional statistic and not a statistical statistic.  There's a difference.

So, a lesson is here to be learned:  Higher gas prices make people miserable.  Lower gas prices make people happy.  Politicians would be well-served to remember that.

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Dan Green is an active loan officer. Email or call 513-443-2020. Dan is on Twitter at @mortgagereports.