CNBC's Jim Cramer on Thursday said that if it weren't for the American consumer, U.S. bond yields would be negative like in many other nations around the world.
"If we were two-thirds industrial and one-third consumer, then we would have negative yields," Cramer said on "Squawk on the Street." In actuality, consumer spending accounts for two-thirds of U.S. economic activity.
Consumer confidence has been strong over the past few months. From the April-to-June period, consumer spending helped boost GDP, with personal consumption expenditures rising 4.3%. It was the best performance since the fourth quarter of 2017.
Aside from consumer spending, Cramer cited as confidence indicators the strong job market and the fact that "we are not an industrial economy." Cramer said he's more "sanguine" than most people.
J.P. Morgan said its credit card growth is running at 8%, and consumer spending growth is tracking around 11%. It's not alone. According to Cramer, all of the top 25 banks are seeing a 12% year-over-year advance in consumer credit.
"There's good credit creation," Cramer said. "It's almost as if the strong dollar hurt some international companies."
But he added, "The decline in interest [rates] is extraordinary," which can only help people seeking to take out loans to buy homes or cars.
The 10-year Treasury yield, which briefly plunged to three-year lows below 1.6% on Wednesday, moved back above 1.7%, where it remained Thursday morning.
The Federal Reserve cut interest rates last month, and it's increasingly expected to do it again next month.
— CNBC's Jeff Cox contributed to this report