US Conference Board Consumer Confidence index increased to 108.3 in December, from the previous month's upwardly revised 101.4 (intialal reding 100.2) and compared to market expectations of 101.0.
- Present situation Index 147.2 in December versus 138.3 (revised from 137.4)
- Expectations index 82.4 vs 76.7 last month (revised from 75.4).
- 1 year inflation expectations 6.7% in December down from 7.1% in November
Source:conference-board.org
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Create account Try a demo Download mobile app Download mobile app“Consumer confidence bounced back in December, reversing consecutive declines in October and November to reach its highest level since April 2022. The Present Situation and Expectations Indexes improved due to consumers’ more favorable view regarding the economy and jobs. Inflation expectations retreated in December to their lowest level since September 2021, with recent declines in gas prices a major impetus. Vacation intentions improved but plans to purchase homes and big-ticket appliances cooled further. This shift in consumers’ preference from big-ticket items to services will continue in 2023, as will headwinds from inflation and interest rate hikes” said Lynn Franco, director of economic indicators and surveys at The Conference Board.
Despite recession warnings and mass-layoffs respondents are surprisingly quite optimistic when it comes to short-term labor market outlook.
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19.5% of consumers expect more jobs to be available, up from 18.5%.
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18.3% anticipate fewer jobs, down from 21.2%.
Simultaneously, existing home sales figures for November were released. Sales plunged more than expected to 4.09 million from 4.43 million in October, well below analysts’ estimates of 4.20 million. It is the tenth month of falling sales in a raw and the lowest level since May of 2020 as high mortgage rates weigh on affordability. The median existing-home sales price rose 3.5% year-on-year to $370,700. The inventory of unsold existing homes retreated for the fourth straight month to 1.14 million or the equivalent of 3.3 months' supply at the current monthly sales pace.
Existing home sales continue to move lower sharply, which is another recession warning signal. Source: Bloomberg via ZeroHedge
EURUSD bounced off the 1.0600 support after data release. Source:xStation5
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