By Breitbart News Network | Created at 2024-11-26 18:10:46 | Updated at 2024-11-28 05:37:59
1 day ago
Consumer confidence climbed in November, reaching its highest level in over a year, as Americans responded to an improving economy and Donald Trump’s return to the presidency.
The Conference Board’s consumer confidence index rose to 111.7, up from a revised 109.6 in October, marking its highest point since July 2023, according to data released Tuesday.
The Conference Board said that improvements in views of the current economic situation, particularly the labor market, drove the improvement.
“Consumer confidence continued to improve in November and reached the top of the range that has prevailed over the past two years,” said Dana M. Peterson, Chief Economist at The Conference Board. “November’s increase was mainly driven by more positive consumer assessments of the present situation, particularly regarding the labor market. Compared to October, consumers were also substantially more optimistic about future job availability, which reached its highest level in almost three years. Meanwhile, consumers’ expectations about future business conditions were unchanged and they were slightly less positive about future income.”
The election of Trump appears to have bolstered optimism among consumers and businesses, according to a number of surveys. The Conference Board does not directly ask about the influence of elections or partisan affiliations of respondents. It said that write-in responses about politics surged to above 2020 levels but were below 2016 levels.
Confidence surged among younger consumers in November, with those under 35 seeing the largest gains. In contrast, confidence among individuals aged 35 to 54 dipped slightly following a strong increase in the prior month. Across income brackets, confidence rose across the board, except for those at the extremes—households earning over $125,000 and those earning less than $15,000. Over a six-month moving average, consumers under 35 and households with incomes above $100,000 continue to exhibit the highest levels of confidence.
The expectations index, a measure of consumer sentiment about the future, inched up to 92.3, its highest reading since December 2021. Earlier this year, the index languished in recessionary territory, as consumers faced stubbornly high prices and economic uncertainty.
Inflation has slowed considerably from the highs of 2022, although consumers are still struggling under the weight of price levels that are much higher than they would have been without the period of high inflation. Low unemployment has also supported robust consumer spending, keeping the economy on a growth trajectory.
The overall index remains below pre-pandemic levels, which averaged 128 in 2019, underscoring that some caution persists. Nevertheless, the upward trend signals that Americans are regaining confidence as the holiday shopping season begins.
