US consumer confidence at highest in 8 months after 2-month decline

By Ovunc Kutlu

ISTANBUL (AA) - US consumer confidence rose in December, ending two straight months of declines to reach its highest since April, according to data released Wednesday by the Conference Board.

The Consumer Confidence Index, a leading indicator of consumer spending and economic activity, soared 6.9 points to 108.3, up from 101.4 in November, the New York-based global research group said in a report.

The expectation for the index was to come in at 101.0.

"Inflation expectations retreated in December to their lowest level since September 2021, with recent declines in gas prices a major impetus," Lynn Franco, senior director of economic indicators at the Conference Board, said in a statement.

"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," Franco added.

The Present Situation Index, based on consumers’ assessment of current business and labor market conditions, climbed 8.9 points to 147.2 in December from 138.3 last month.

The Expectations Index, based on consumers’ short-term outlook for income, business, and labor market conditions, rose 5.7 points to 82.4 from 76.7.

The report noted, however, expectations are still lingering around 80 -- a level associated with recession.