NEW YORK - The consumer confidence index surged to 64.5 in December from a downwardly revised 55.2 last month, The Conference Board reported Tuesday.
Economists polled by Thomson Reuters predicted the index would be 58.3.
The November index was originally reported as 56.0.
The present situation index grew to 46.7 from an unrevised 38.3, while the expectations index surged to 76.4 from a downwardly revised 66.4, originally reported as 67.8.
“After two months of considerable gains, the consumer confidence index is now back to levels seen last spring (April 2011, 66.0),” said Lynn Franco, director of The Conference Board's Consumer Research Center. “Consumers’ assessment of current business and labor market conditions improved again. Looking ahead, consumers are more optimistic that business conditions, employment prospects, and their financial situations will continue to get better. While consumers are ending the year in a somewhat more upbeat mood, it is too soon to tell if this is a rebound from earlier declines or a sustainable shift in attitudes.”
Business conditions were called “good” by 16.6% of respondents in December, up from 13.9% in November. Those saying conditions are “bad” dropped to 33.9% from 38.0%.
The percentage of consumers expecting a pickup in business conditions in the next half year grew to 16.7% from 13.7%, while 13.4% said they expect conditions to worsen, down from 16.1% the prior month.
On the jobs front, those who believe jobs are “plentiful” rose to 6.7% in December from 5.6% in November, while the number saying jobs are “hard to get” decreased to 41.8% this survey from 43.0%. The respondents who see fewer jobs becoming available in a half year, slid to 20.2% from 23.8%. Those expecting more jobs to become available climbed to 13.3% from 12.4%, The Conference Board reported.
Income expectations were mixed, with 17.1% of consumers anticipating an increase in their income in the next six months, up from the prior month's 14.1%, while 14.4% expect their income to decrease, up from 14.1% in the prior month’s survey.
The number of consumers who expected to buy a home in the next six months gained to 5.1% from 4.9%, while the number of respondents planning to buy a car slid to 9.8% from 12.2%. Fewer consumers than last month said they plan to buy a major appliance in the next six months (47.9% vs. 49.4%).
More respondents than last month (50.6% vs. 48.9%) expect to take a vacation in the next six months, but more said they would stay in the U.S. rather than leave the country. Cars rather than airplanes were the preferred mode of travel, by a 27.9%-20.2% margin.
The consumer confidence survey is based on a probability design random sample by the Nielsen Company.
