The Conference Board Consumer Confidence Index improved to 111.7 in November from 109.6 in October, indicating further strengthening in consumer confidence. The Present Situation Index surged to 140.9, reflecting sharply more favorable assessments of current business and labor market conditions. The Expectations Index inched up to 92.3, now well above the recession-warning level of 80.
Confidence strengthened by the youngest consumers aged under 35, while confidence among those between 35-54 years declined. The Conference Board said that confidence improved across all incomes, except among households earning below $15K or more than $125K per year. On another note, the percentage of consumers viewing jobs as plentiful rose to the highest reading since nearly three years ago and inflation expectations for the next 12 months decreased to 4.9%, its lowest reading since March 2020.
This also agrees with market optimism, as 56.4% of consumers expect higher stock prices, while fewer expect higher interest rates. As inflation worries decrease, the top New Year's resolutions for 2025 by consumers have been low prices and improved finances for the household. Many of these trends indicate that economic conditions are assessed in an upbeat way across the threshold of the new year.
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