Consumer Confidence Gains a Bit in November

The consumer confidence index climbed to 49.5 in November from an upwardly revised 48.7 last month, the Conference Board reported yesterday.

The October index was first reported as 47.7. Economists polled by Thomson Reuters predicted a 47.7 reading.

The present situation index fell to 21.0 from an upwardly revised 21.1, originally reported as 20.7, while the expectations index rose to 68.5 from an upwardly revised 67.0 last month, originally seen as 65.7.

“Consumer confidence posted a slight gain in November. The present situation index, however, was virtually unchanged and remains at levels not seen in 26 years,” said Lynn Franco, director of the Conference Board’s consumer research center, referring to the 17.5 index level reached in February 1983.

“The moderate improvement in the short-term outlook was the result of a decrease in the percent of consumers expecting business and labor market conditions to worsen, as opposed to an increase in the percent of consumers expecting conditions to improve,” Franco said. “Income expectations remain very pessimistic and consumers are entering the holiday season in a very frugal mood.”

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