Reflecting an improvement in consumer expectations, the Conference Board released a report on Tuesday showing a rebound in U.S. consumer confidence in the month of November.
The Conference Board said its consumer confidence index rose to 102.0 in November from a downwardly revised 99.1 in October. The increase came following three straight monthly declines.
Economists had expected the consumer confidence index to edge down to 101.5 from the 102.6 originally reported for the previous month.
The rebound by the headline index came as the expectations index jumped to 77.8 in November from a downwardly revised 72.7 in October.
“Consumer expectations for the next six months recovered in November, reflecting improved confidence about future business conditions, job availability, and incomes,” said Dana Peterson, Chief Economist at The Conference Board.
She added, “Compared to last month, expectations that interest rates will rise in the year ahead ticked down, but consumers’ outlook for stock prices continued to weaken in November.”
Despite the monthly increase, the expectations index remained below 80 for a third consecutive month, which historically signals a recession within the next year.
The report also said the present situation index edged down to 138.2 in November from 138.6 in October, as less optimistic views on current job availability outweighed slightly improved views on the state of business conditions.
“November’s increase in consumer confidence was concentrated primarily among householders aged 55 and up; by contrast, confidence among householders aged 35-54 declined slightly,” said Peterson. “General improvements were seen across the spectrum of income groups surveyed in November.”
She added, “Nonetheless, write-in responses revealed consumers remain preoccupied with rising prices in general, followed by war/conflicts and higher interest rates.”
Last Wednesday, revised data released by the University of Michigan showed consumer sentiment in the U.S. deteriorated by less than previously estimated in the month of November.
The University of Michigan said its consumer sentiment index for November was upwardly revised to 61.3 from a preliminary reading of 60.4.
The upwardly revised reading was well above economist estimates for 60.5 but is still down from 63.8 in October.
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