In a shift, young Americans are showing the most confidence in the economy
of ConsumerAffairs
As the country heads toward the end of the year holidays, consumers continue to express confidence in the U.S. economy.
In November, the Conference Board Consumer Confidence Index rose to 111.7, marking a 2.1-point increase from October's 109.6. Conference Board economists say this rise reflects growing optimism about the current business and labor market conditions.
For example, the Present Situation Index, which evaluates these conditions, climbed 4.8 points to 140.9. Meanwhile, the Expectations Index, which considers short-term outlooks for income, business, and labor markets, edged up slightly by 0.4 points to 92.3, staying well above the recession-warning threshold of 80.
Dana M. Peterson, chief economist at The Conference Board, noted that November's improvement was largely due to more favorable assessments of the labor market. Consumers are particularly optimistic about future job availability, with confidence reaching its highest level in nearly three years.
Not as confident about the future
However, expectations for future business conditions remained steady, and there was a slight decline in optimism regarding future income.
The increase in consumer confidence was most pronounced among those under 35, while those aged 35 to 54 saw a slight dip after a surge in the previous month. Confidence rose across most income groups, except for those earning over $125,000 and under $15,000.
On a six-month moving average, younger consumers and those earning over $100,000 remained the most confident.
The survey also revealed a decline in the number of consumers anticipating a recession in the next year, reaching the lowest level since July 2022. While assessments of current family financial situations dipped slightly, optimism for future finances hit a new high.
Bullish on the stock market
Notably, 56.4% of consumers expect stock prices to rise in the coming year, setting a new record for this measure, while only 21.3% foresee a decline.
Inflation expectations for the next 12 months decreased to 4.9% from 5.3% in October, the lowest since March 2020. In terms of purchasing plans, intentions to buy homes stalled, while plans for auto purchases saw a slight uptick. Consumers expressed a preference for buying goods over services, although spending on services like travel and healthcare is expected to increase.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-11-27 13:43:13
