US December consumer confidence blows past expectations
US consumer confidence climbed sharply in December, as optimism about the economy spread to wealthier and younger households, according to survey data published Wednesday.
Consumer confidence surged to 110.7, marking the second straight month of gains after last month's revised figure of 101.0, the Conference Board announced in a statement.
This was far better than the market consensus of 104.0 compiled by Briefing.com, and suggests consumers are rapidly shaking off some of their recent pessimism about the state of the US economy.
«December's increase in consumer confidence reflected more positive ratings of current business conditions and job availability,» said Dana Peterson, chief economist at The Conference Board, the research group that published the survey.
The largest gains were seen among householders aged 35-54, «and households with income levels of $125,000 and above,» she added.
The lighter mood seen among the over-55s in November appears to be spreading to other groups, while consumers are also feeling more optimistic about the future.
«Consumer expectations for the next six months also increased in December, reflecting improved confidence about future business conditions, job availability, and incomes,» Peterson said.
Meanwhile, expectations of further interest rate hikes fell to the lowest levels since January 2021, she added, as the US Federal Reserve penciled in three rate cuts for the year ahead.
«Consumer confidence rose more than expected in December, to the highest level since July,» High Frequency Economics chief US economist Rubeela Farooqi wrote in a note to clients.
But she warned that «a loosening in labor market conditions
