Dec 29, 2016

In December, Consumer Confidence in the US at the Highest Since 2001 Says Survey

Media reports based on The Conference Board’s  Consumer Confidence Index®, said that in December, the  Index --  which had already posted gains in November --   recorded its highest level since August 2001.  Currently the index is at 113.7;  up from 109.4 recorded in November.  While the Expectations (for next six months) index rose from 94.4 to 105;  the Present Situation index fell from 132.0 in November to 126.1.

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

A chunk of American citizens, it seems, are looking forward to more jobs – 21% as against 16.1%, and again the highest; this time since February 2011. And they are expecting better salaries as well -  so say 21%, up from 17.4%.  A sizeable percentage  of the survey sample – 44.7 %, and the most optimistic response  since 2004 – said they expected stock prices to rise in the coming year. 

Interestingly, the reports said that the “sentiment” of 35-54 year-olds rose, and amongst the 55 plus category was the  highest since  July 2007; while confidence of those of 35 years and  below actually fell.

The  Index, released every month,  is based on a  monthly  Consumer Confidence Survey®,   conducted by  analytics firm  Nielsen, for The Conference Board.