The Conference Board, a non-partisan, not-for-profit think tank founded in 1916, released today (12-21-22) its Consumer Confidence Index® (CCI) for December 2022. The CCI, following back-to-back monthly declines, rose precipitously. The Index now stands at 108.3 (1985=100), up from November’s reading of 101.4.
The Present Situation Index—based on consumers’ assessment of current business and labor market conditions—increased to a reading of 147.2 in December, up from its November reading of 138.3.
The Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions—improved in December to a reading of 82.4, up from its November reading of 76.7. The Conference Board notes, however, that expectations are still lingering around 80, a level closely associated with recession.
Adding additional background information and her analysis of the release of the CCI, Lynn Franco, Senior Director of Economic Indicators at The Conference Board, said:
“Consumer confidence bounced back in December, reversing consecutive declines in October and November to reach its highest level since April 2022. The Present Situation and Expectations Indexes improved due to consumers’ more favorable view regarding the economy and jobs. Inflation expectations retreated in December to their lowest level since September 2021, with recent declines in gas prices a major impetus. Vacation intentions improved but plans to purchase homes and big-ticket appliances cooled further. This shift in consumers’ preference from big-ticket items to services will continue in 2023, as will headwinds from inflation and interest rate hikes.”
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