NEW YORK - The consumer confidence index surged to 56.0 in November from an upwardly revised 40.9 last month, The Conference Board reported Tuesday.
Economists polled by Thomson Reuters predicted the index would be 43.0.
The October index was originally reported as 39.8.
The present situation index grew to 38.3 from an upwardly revised 27.1, originally reported as 26.3, while the expectations index surged to 67.8 from an upwardly revised 50.0, originally reported as 48.7.
“Confidence has bounced back to levels last seen during the summer (July 59.2),” said Lynn Franco, director of The Conference Board's Consumer Research Center. “Consumers’ assessment of current conditions finally improved, after six months of steady declines. Consumers’ apprehension regarding the short-term outlook for business conditions, jobs and income prospects eased considerably. Consumers appear to be entering the holiday season in better spirits, though overall readings remain historically weak.”
Business conditions were called “good” by 13.3% of respondents in November, up from 11.2% in October. Those saying conditions are “bad” dropped to 38.2% from 43.7%.
The percentage of consumers expecting a pickup in business conditions in the next half year grew to 13.6% from 10.2%, while 15.8% said they expect conditions to worsen, down from 21.3% the prior month.
On the jobs front, those who believe jobs are “plentiful” rose to 5.8% in November from 3.6% in October, while the number saying jobs are “hard to get” decreased to 42.1% this survey from 46.9%. The respondents who see fewer jobs becoming available in a half year, slid to 24.1% from 27.6%. Those expecting more jobs to become available climbed to 12.9% from 10.8%, The Conference Board reported.
Income expectations improved, with 14.9% of consumers anticipating an increase in their income in the next six months, up from the prior month's 11.1%, while 13.8% expect their income to decrease, off from 19.3% in the prior month’s survey.
The number of consumers who expected to buy a home in the next six months jumped to 4.7% from 4.4%, while the number of respondents planning to buy a car slid to 11.4% from 11.7%. More consumers than last month said they plan to buy a major appliance in the next six months (49.5% vs. 47.2%).
Fewer respondents than last month (48.9% vs. 46.9%) 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 25.7%-21.4% margin.
The consumer confidence survey is based on a probability design random sample by the Nielsen Company.
