Consumer Confidence Index Gains to 52.9

The consumer confidence index climbed to 52.9 in December from an upwardly revised 50.6 last month, the Conference Board reported yesterday.

The November index was originally reported as 49.5.

Economists polled by Thomson Reuters predicted a 52.0 reading.

The present situation index fell to 18.8 from an upwardly revised 21.2, originally reported as 21.0, while the expectations index rose to 75.6 from an upwardly revised 70.3 last month, originally seen as 68.5.

“Consumer confidence posted yet another moderate gain in December as expectations for the short-term future increased to the highest level in two years (75.8 Dec. 2007),” said Lynn Franco, director of the board’s Consumer Research Center. “The present situation index, however, continued to lose ground and remains at a 26-year low (17.5 Feb. 1983). A more optimistic outlook for business and labor market conditions was the driving force behind the increase in the expectations index. Regarding income, however, consumers remain rather pessimistic about their short-term prospects and this will likely continue to play a key role in spending decisions in early 2010.”

Business conditions were called “good” by 7.0% of respondents in December, a decrease from 8.1% the prior month. Those saying conditions are “bad” rose to 46.6% from 44.5%.

The percentage of consumers expecting a pickup in business conditions in the next half year grew to 21.3% from 19.7%, while 11.9% said they expect conditions to worsen, down from 14.6% the prior month.

On the jobs front, those who believe jobs are “plentiful” decreased to 2.9% in December from 3.1% in November, while the number saying jobs are “hard to get” decreased to 48.6% this survey from 49.2%. The respondents who see more jobs becoming available in a half year, gained to 16.2% from 15.8%. Those expecting fewer jobs to become available fell to 20.7% from 23.1%, the board reported.

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