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Consumer confidence seems to have popped in the last month of a year that dodged recession forecasts. According to a survey released by The Conference Board, consumer confidence rose to 128.2 in December from 125.5 the prior month. This is the highest reading since October 2018 and well above the expected 125.4.
The survey suggests that most indicators presided over a strong increase in the level of consumer confidence in the last months of 2019. The index is now considered to be indicating optimism for the first quarter of 2020.
The survey also revealed that consumers’ assessments of both current and future market performance improved significantly. Currently, consumers see the labor market as being in good shape, with a net 54.2 percent saying there are plenty of jobs in their area. For the future, consumers are optimistic about business opportunities as net 35.2 percent of survey respondents foresee better business conditions over the next six months.
The increase in consumer confidence signals optimism among Americans, despite increasing trade tensions and slowing growth globally. The increase appears to be fueled by strong consumer spending, wage growth, and low unemployment, which have helped to offset some of the economic risks presented by global trade issues. As long as consumer spending continues, the economy should remain on a course of steady growth in the first quarter of 2020.