America’s consumer confidence remains strong, but decreased slightly in December, according to The Conference Board.
The index in 2017’s final month sits at 122.1, down from 128.6 in November. The Present Situation Index increased from 154.9 to 156.6, while the Expectations Index declined from 111.0 last month to 99.1 this month.
“Consumer confidence retreated in December after reaching a 17-year high in November,” said Lynn Franco, director of economic indicators at The Conference Board. “The decline in confidence was fueled by a somewhat less optimistic outlook for business and job prospects in the coming months. Consumers’ assessment of current conditions, however, improved moderately. Despite the decline in confidence, consumers’ expectations remain at historically strong levels, suggesting economic growth will continue well into 2018.”
The percentage of consumers who feel business conditions are “good” increased slightly from 35% to 35.2%, while those saying business conditions are “bad” decreased marginally, from 12.3% to 12.1%. Consumers’ assessment of the labor market was mixed. Those claiming jobs are “plentiful” decreased from 37.5% to 35.7%, while those claiming jobs are “hard to get” also decreased, from 16.8% to 15.2%, a 16-year low.
Consumers’ optimism about the short-term outlook declined in December. The percentage of consumers anticipating business conditions to improve over the next six months declined from 23.1% to 20.2%, while those expecting business conditions to worsen increased from 6.7% to 9.2%.
