The Conference Board Consumer Confidence Index surged 15.1 points in November to 56.0, up from 40.9.
While the index is still far below a reading of 90, which would indicate the economy is on solid footing, it is back to where it stood in July. More importantly, the November jump reversed.six months of declines.
As well, the Present Situation Index increased 11.2 points to 38.3, and the Expectations Index got 1 17.8-point bounce, to reach 67.8.
“Confidence has bounced back to levels last seen during the summer, when the index reached 59.2 in July,” said Lynn Franco, director of The Conference Board Consumer Research Center. “Consumers’ assessment of current conditions finally improved, after six months of steady declines. Consumers’ apprehension regarding the short-term outlook for business conditions, jobs and income prospects eased considerably. Consumers appear to be entering the holiday season in better spirits, though overall readings remain historically weak.”
Consumers who describe business conditions as “bad” fell to 38.2% from 43.7%. The number of people claiming jobs are “plentiful” increased to 5.8%, up from 3.6%. Those expecting more jobs in the months ahead rose to 12.9%, up from 10.8%.
In addition, 13.6% anticipate business conditions to improve over the next six months, up from 10.2%.