U.S. con­sumer con­fi­dence at high­est level since 2001

The Denver Post - - BUSINESS -

Con­sumer con­fi­dence climbed in De­cem­ber to the high­est level since August 2001 as Amer­i­cans were more up­beat about the out­look than at any time in the last 13 years, ac­cord­ing to a re­port Tues­day from the New York­based Con­fer­ence Board.

Con­fi­dence index in­creased to 113.7 (fore­cast was 109) from a re­vised 109.4 in Novem­ber. The mea­sure of con­sumer ex­pec­ta­tions for the next six months rose to 105.5, the high­est since De­cem­ber 2003, from 94.4.

The present con­di­tions index fell to 126.1 from 132. The share of Amer­i­cans ex­pect­ing bet­ter busi­ness con­di­tions six months from now rose to 23.6 per­cent, the high­est since Fe­bru­ary 2011, from 16.4 per­cent.

Amer­i­can house­holds are ex­pect­ing a Don­ald Trump ad­min­is­tra­tion to de­liver. They are more up­beat about the prospects for the econ­omy, la­bor mar­ket and their in­comes, ac­cord­ing to the Con­fer­ence Board’s re­port. The re­sults cor­rob­o­rate sur­veys by the Univer­sity of Michi­gan and the Na­tional Fed­er­a­tion of In­de­pen­dent Busi­ness, which showed jumps in house­hold and busi­ness sen­ti­ment on Trump’s pledges to boost jobs, cut taxes and ease reg­u­la­tions.

“The post-elec­tion surge in op­ti­mism for the econ­omy, jobs and in­come prospects, as well as for stock prices which reached a 13year high, was most pro­nounced among older con­sumers,” Lynn Franco, di­rec­tor of eco­nomic in­di­ca­tors at the Con­fer­ence Board, said in a state­ment. “Look­ing ahead to 2017, con­sumers’ con­tin­ued op­ti­mism will de­pend on whether or not their ex­pec­ta­tions are re­al­ized.”

Share of those who said they see more job avail­abil­ity six months from now rose to 21 per­cent, the high­est since Fe­bru­ary 2011, from 16.1 per­cent.

The la­bor dif­fer­en­tial, which mea­sures the dif­fer­ence be­tween those say­ing jobs are cur­rently plen­ti­ful and hard to get, fell to 4.4 points from 6.6 points. The Share of re­spon­dents who ex­pected their in­comes to rise in the next six months rose to 21 per­cent from 17.4 per­cent. The dif­fer­ence in the share ex­pect­ing in­comes to in­crease and those an­tic­i­pat­ing they will fall was 12.4 points, the widest since Jan­uary 2007.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.