Economic Update: Consumer Confidence
After falling to the lowest level in 14 months in November, the Conference Board’s Consumer Confidence Index rebounded in December.
The index was reported at 96.5, which was well above the consensus expectation for a reading of 93.0 and above last month’s reading of 92.6 (Oct: 99.1).
According to Lynn Franco, Director of Economic Indicator at The Conference Board: “Consumer confidence improved in December, following a moderate decrease in November. As 2015 draws to a close, consumers’ assessment of the current state of the economy remains positive, particularly their assessment of the job market. Looking ahead to 2016, consumers are expecting little change in both business conditions and the labor market. Expectations regarding their financial outlook are mixed, but the optimists continue to outweigh the pessimists.”
The Present Situation Index rose to 115.3 from 110.9 last month.
The Expectations Index improved to a reading of 83.9 from 80.4 in November.
On the jobs front, the report was fairly upbeat. “Consumers’ outlook for the labor market was more optimistic. Those anticipating more jobs in the months ahead increased slightly to 12.9 percent from 12.0 percent, while those anticipating fewer jobs decreased from 18.5 percent to 16.6 percent. The proportion of consumers expecting their incomes to increase declined from 17.3 percent to 16.3 percent.”
The Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households. The monthly survey is conducted for The Conference Board by TNS.
The analysis provided is based on both technical and fundamental research and is provided “as is” without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.
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