US consumer confidence surges by most since early 2021
US CONSUMER confidence rose in December by the most since early 2021 as Americans grew more upbeat about the labour market and inflation.
The Conference Board’s index increased to 110.7 in December from a revised 101 reading in November, data published on Wednesday (Dec 20) showed. The median estimate in a Bloomberg survey of forecasters called for a 104.5 reading.
A measure of expectations – which captures the outlook for about six months out – advanced as consumers saw better business conditions, incomes and labor-market prospects. Expected inflation a year ahead fell to the lowest level since late 2020.
Meanwhile a gauge of current conditions rebounded from the lowest reading in more than two years.
Americans are becoming increasingly upbeat on economic prospects heading into 2024 as the labour market holds firm. While prices remain higher overall, savings and higher wages have allowed consumers to maintain spending.
“December’s increase in consumer confidence reflected more positive ratings of current business conditions and job availability, as well as less pessimistic views of business, labour market, and personal income prospects over the next six months,” Dana Peterson, chief economist at the Conference Board, said in a statement.
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Labor-market sentiment improved from November. The share of consumers who said jobs were plentiful rose to a five-month high. The difference between those saying jobs are plentiful versus hard to get – a metric watched by economists to gauge labor-market strength – jumped by the most since early 2022. BLOOMBERG
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