United States: Consumer confidence beats expectations in November
November 24, 2010
The Reuters/University of Michigan index of consumer sentiment rose from 67.7 points in October to 71.6 points in November. The figure overshot market expectations of a rise in consumer confidence to just 69.5 points and was also above the mid-November reading of 69.3 points. At the current level, the index returned to the same level observed in June, suggesting that the recovery had gained traction. Although consumer sentiment increased, a majority of respondents believe ?the economic gains will be too small to improve their own job and income position anytime soon?, according to the survey. In addition, October's larger-than-expected increase in payrolls contributed positively to the gains in consumer sentiment. However, respondents do not expect the unemployment rate to fall significantly in 2011 and see the slow pace of economic growth remaining largely unchanged throughout next year.