US Consumer Confidence Surges in December, Led by Labour Market Optimism

US Consumer Confidence Surges in December, Led by Labour Market Optimism

VoM News Desk | December 21, 2023 | 12:02 PM IST | United States of America | Follow on Google News

US Consumer Confidence Surges in December, Led by Labour Market Optimism /Reuters

US Consumer Confidence Surges in December, Led by Labour Market Optimism

In a significant upturn, US consumer confidence for December soared to 110.7 from a revised November reading of 101, marking the most substantial increase since early 2021, as revealed by data from the Conference Board on Wednesday. Forecasts in a Bloomberg survey had anticipated a 104.5 reading, highlighting the unexpected surge.

The surge was driven by a bolstered outlook for around six months ahead, reflecting more optimistic sentiments regarding business conditions, incomes, and labor market prospects. Expected inflation for the coming year dropped to its lowest level since late 2020, signifying increased confidence in economic stability.

Current conditions, indicated by a gauge that rebounded from a more than two-year low, showcased a renewed positive outlook among consumers. This optimism is attributed to the consistent stability observed in the labor market. Despite lingering inflation concerns, sustained savings and higher wages have empowered consumers to maintain their spending levels.

Dana Peterson, Chief Economist at the Conference Board, emphasized that December’s upswing in consumer confidence stemmed from brighter evaluations of current business conditions, job availability, and more favorable prospects concerning business, labor market, and personal income over the next six months.

The labor-market sentiment notably improved from November, with a higher percentage of consumers expressing that jobs were plentiful, marking a five-month high.

The metric assessing the difference between those viewing jobs as plentiful versus hard to obtain, an essential indicator for gauging labor-market strength, surged significantly, indicating improved sentiment and confidence in employment prospects.

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