Consumer Confidence Index Increases to 54.1

Consumer confidence surged ahead of economist expectations in November, climbing to 54.1 from a level of 49.9 the previous month, the Conference Board reported Tuesday.

Economists predicted the index of consumer attitudes would be 52.0. The October headline index originally was reported as 50.2.

The present-situation index improved to 24.0 from 23.5 and a measure of current expectations rose to 74.2 from 67.5

Business conditions were called “good” by 8.1% of respondents in November, down slightly from 8.3% in October. The proportion reporting “bad” conditions rose to 43.6% from 42.3%.

“Despite higher gasoline prices and a poor outlook on the housing front, consumers are more optimistic due to gains in the stock market, good news on jobs, sufficient deleveraging, and relatively low prices,” said Chris Christopher, an economist at IHS Global Insight. “The increase in consumer optimism is very good news for retailers, since holiday sales for many retail outlets are crucial and for many it is a make-or-break situation.”

For reprint and licensing requests for this article, click here.
MORE FROM BOND BUYER