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Last Update: 27-Dec-11 10:57 ET
Consumer Confidence Index Recovers from Summer Debt Ceiling Dip
The Conference Board's Consumer Confidence Index increased from a downwardly revised 55.2 (from 56.0) in November to 64.5 in December. That is the highest confidence level since April. The Briefing.com consensus expected the Consumer Confidence Index to increase to 58.0.
The gain in confidence mirrored the growth in the University of Michigan Consumer Sentiment Index. That index increased from 64.1 in November to 69.9 in December, which is the highest level since June.
Like the Sentiment Index, the Confidence Index showed strong growth in both the Expectations and Present Situation Indices. Most of the gain in the Consumer Sentiment Index, however, came from better future expectations while growth in the Consumer Confidence Index came mostly from better current economic conditions.
The Present Situation Index increased from 38.3 in November to 46.7 in December. That is the highest point since September 2008. This reflects the recent improvement in the labor sector where the initial claims level has fallen to three-year lows and the unemployment rate has dipped below 9.0%.
The gain in confidence mirrored the growth in the University of Michigan Consumer Sentiment Index. That index increased from 64.1 in November to 69.9 in December, which is the highest level since June.
Like the Sentiment Index, the Confidence Index showed strong growth in both the Expectations and Present Situation Indices. Most of the gain in the Consumer Sentiment Index, however, came from better future expectations while growth in the Consumer Confidence Index came mostly from better current economic conditions.
The Present Situation Index increased from 38.3 in November to 46.7 in December. That is the highest point since September 2008. This reflects the recent improvement in the labor sector where the initial claims level has fallen to three-year lows and the unemployment rate has dipped below 9.0%.
