Consumer Confidence Optimistic About Current And Future Business Conditions
Consumer confidence in the economy has improved in November according to the Consumer Confidence Index, which is up to a reading of 56.0 from 40.9 in October. The future also looks good as the Expectations Index rose to 67.8 from 50.0, signaling optimism for the months ahead.
Says Lynn Franco, Director of The Conference Board Consumer Research Center: "Confidence has bounced back to levels last seen during the summer (July 2011, 59.2). Consumers' assessment of current conditions finally improved, after six months of steady declines. Consumers' apprehension regarding the short-term outlook for business conditions, jobs and income prospects eased considerably. Consumers appear to be entering the holiday season in better spirits, though overall readings remain historically weak."
Consumers stating business conditions as "good" increased from 11.2% to 13.3% this month while those stating business conditions are "bad" declined 5.5% month-over-month. Consumers are more positive about the labor market as well as "plentiful" jobs claims increased to 5.8%, up from 3.6% the previous month. Consumers expect business conditions to continue improving in the next six months as the percentage optimistic increased while the proportion of consumers anticipating worse business conditions declined. Jobs are expected to increase in the coming months along with consumers expecting an increase in their incomes.
Source: The Conference Board