December Consumer Confidence Index Sees Decline
Consumer confidence took a hit in December, with the Conference Board Consumer Confidence Index dropping by 8.1 points to 104.7. This decline was reflected in both the Present Situation Index, which fell 1.2 points to 140.2, and the Expectations Index, which tumbled 12.6 points to 81.1, just above the recession threshold of 80.
Dana M. Peterson, chief economist at The Conference Board, noted that while the recent increase in consumer confidence wasn’t sustained in December, there were some bright spots. Consumers’ views on current labor market conditions improved, in line with recent job and unemployment data. However, their assessment of business conditions weakened, leading to decreased optimism about future business conditions and incomes.
Overall, consumers in December were less hopeful about future employment prospects, marking a shift from the cautious optimism seen in October and November. The cutoff date for these preliminary results was December 16, 2024.
It’s clear that consumer sentiment plays a crucial role in economic health, and fluctuations in confidence levels can impact spending and investment decisions. Keeping an eye on these indicators can provide valuable insights into the state of the economy and potential future trends.
