US consumer confidence bounced back in December as the outlook for inflation and employment improved, The Conference Board reported.
The business-data provider’s Consumer Confidence Index increased sharply for the month to 108.3 from 101.4 in November, its first rise following back-to-back monthly declines, The Conference Board said last week. Consumers’ assessment of current business and labor-market conditions also improved, as did their short-term outlook for income and the job market. However, consumer expectations are still in the lower range — figures associated with recession, the board explained.
“Consumer confidence bounced back in December…to reach its highest level since April 2022,” said Lynn Franco, The Conference Board’s senior director of economic indicators. “The Present Situation and Expectations indexes improved due to consumers’ more favorable view regarding the economy and jobs. Inflation expectations retreated in December to their lowest level since September 2021.”
Recent declines in gas prices also contributed to the improved sentiment, the board noted. While consumers said they planned to focus more on experiential purchases such as vacations, their desire to buy homes and big-ticket appliances cooled further.
“This shift in consumers’ preference from big-ticket items to services will continue in 2023, as will headwinds from inflation and interest-rate hikes,” Franco added.
Image: A shopping mall in Marlborough, Massachusetts. (Massachusetts Office of Travel & Tourism/Flickr)
WhatsApp
Email
Facebook
Twitter
LinkedIn