United States: Consumer confidence jumps to nine-year high in November
November 29, 2016
In November, the Conference Board’s consumer confidence index more than reversed the loss recorded in the previous month and climbed to 107.1 from 100.8 in October. The result marked the highest level since July 2007 and fared better than the 101.5 the markets had expected.
November’s substantial jump in sentiment reflected U.S. consumers’ optimism about the economy and the labor market, as they head into the key holiday shopping season. Looking at the details, consumers’ perceptions of present economic conditions rose from 123.1 in October to 130.3 in November—also an over nine-year high—and households’ economic expectations jumped to 91.7 in November (October: 86.0). The labor differential—the difference between the percent of respondents saying jobs are available and those saying jobs are hard to get—rose to 5.2 in November, which reversed a small decline in October.
The result also showed consumers shrugging off uncertainty ahead of the presidential election, as most respondents to the survey were contacted before 8 November. A small sample of consumers was polled following the election, with a cutoff date of 15 November.
Author: Ricardo Aceves, Senior Economist