SurveysNov 03, 2023
Here’s What NRF Is Forecasting for the Holiday SeasonSurveysDec 22, 2023
Consumer Confidence Climbs in December
More optimistic views on the labor market as well as current and future business conditions gave the index a boost.
The Conference Board’s consumer confidence index rose to 110.7 in December from a downwardly revised 101.0 last month, its highest level since July.
New York—U.S. consumer confidence climbed in December, reaching its highest level since July, as optimism about the labor market and current and future business conditions returned.
Notably, two-thirds of respondents still think a recession is possible in 2024.
The Conference Board’s consumer confidence index rose to 110.7 in December from a downwardly revised 101.0 in November.
“December’s increase in consumer confidence reflected more positive ratings of current business conditions and job availability, as well as less pessimistic views of business, labor market, and personal income prospects over the next six months,” said Dana Peterson, chief economist at The Conference Board.
Optimism was seen across all ages and household income levels, said Peterson, but the gains were largest among householders aged 35-54 and households with income levels of $125,000 and above.
According to December’s write-in responses, the No.1 issue affecting consumers was rising prices. Issues like politics, interest rates, and global conflicts saw downticks as top concerns.
As for a recession, the “Consumers’ Perceived Likelihood of a U.S. Recession over the Next 12 Months” numbers fell to the lowest level seen this year. However, two-thirds still see a possible downturn in 2024.
The Present Situation Index, which measures consumers’ current view of business and labor market conditions, rose to 148.5 from 136.5 last month.
“Assessments of the present situation rose in December, as seen by the more positive views of business conditions and the employment situation,” noted Peterson.
In contrast, when asked to assess their current family financial conditions (a measure not included in calculating the Present Situation Index), fewer people said “good” while slightly more people said “bad.”
“This suggests consumers’ view of their current finances may paint a more tempered picture than the perception that overall conditions are better than a month ago,” said Peterson.
Consumers’ view of current business conditions was more positive in December, with the percentage of respondents who said current business conditions are “good” up to 22 percent from 19 percent, while those who said conditions are “bad” decreased to 17 percent from 19 percent.
Consumers also had a positive view of the current labor market.
The percentage of respondents who felt jobs were plentiful was up to 41 percent in December from 39 percent, while 13 percent said jobs were “hard to get,” down from 16 percent.
Related stories will be right here …
Notably, two-thirds of respondents still think a recession is possible in 2024.
The Conference Board’s consumer confidence index rose to 110.7 in December from a downwardly revised 101.0 in November.
“December’s increase in consumer confidence reflected more positive ratings of current business conditions and job availability, as well as less pessimistic views of business, labor market, and personal income prospects over the next six months,” said Dana Peterson, chief economist at The Conference Board.
Optimism was seen across all ages and household income levels, said Peterson, but the gains were largest among householders aged 35-54 and households with income levels of $125,000 and above.
According to December’s write-in responses, the No.1 issue affecting consumers was rising prices. Issues like politics, interest rates, and global conflicts saw downticks as top concerns.
As for a recession, the “Consumers’ Perceived Likelihood of a U.S. Recession over the Next 12 Months” numbers fell to the lowest level seen this year. However, two-thirds still see a possible downturn in 2024.
The Present Situation Index, which measures consumers’ current view of business and labor market conditions, rose to 148.5 from 136.5 last month.
“Assessments of the present situation rose in December, as seen by the more positive views of business conditions and the employment situation,” noted Peterson.
In contrast, when asked to assess their current family financial conditions (a measure not included in calculating the Present Situation Index), fewer people said “good” while slightly more people said “bad.”
“This suggests consumers’ view of their current finances may paint a more tempered picture than the perception that overall conditions are better than a month ago,” said Peterson.
Consumers’ view of current business conditions was more positive in December, with the percentage of respondents who said current business conditions are “good” up to 22 percent from 19 percent, while those who said conditions are “bad” decreased to 17 percent from 19 percent.
Consumers also had a positive view of the current labor market.
The percentage of respondents who felt jobs were plentiful was up to 41 percent in December from 39 percent, while 13 percent said jobs were “hard to get,” down from 16 percent.
The Expectations Index, which measures consumers’ outlook for income, business, and labor market conditions in the near future, climbed to 85.6 from the downwardly revised 77.4 in November.
“Expectations that interest rates will rise in the year ahead plummeted to the lowest levels since January 2021, and consumers’ outlook for stock prices rose to levels of optimism last seen in mid-2021,” added Peterson.
“On a month-to-month basis, buying plans for autos, homes, and big-ticket appliances rose moderately across the board, ending the year on a slightly more positive note.”
Looking at short-term business conditions, respondents’ outlooks were more optimistic, with 19 percent of respondents expecting business conditions to improve, up from 17 percent in November, while 16 percent expected them to worsen, down from 20 percent.
Consumers’ assessment of the short-term labor market outlook in December was more positive.
The percentage of respondents who expect more jobs to be available was up to 18 percent from 17 percent in November, while 17 percent expect fewer jobs to be available, down from 20 percent.
Consumers’ short-term income expectations were also somewhat more optimistic.
More respondents expect to see their incomes increase (19 percent in December versus 18 percent in November) while 13 percent expect their incomes to decrease, virtually unchanged from November.
The Conference Board recently added a new set of questions to its monthly survey, asking consumers how they felt about their family finances.
In December, consumers’ views of their families’ current financial situation dipped slightly while views of the six-month situation were more optimistic.
Editors' Picks
Sponsored by
More on Surveys
The Latest
ColumnistsOct 22, 2024
The Smart Lab: Tips for Preparing for Your Best Q4 YetFrom prioritizing the customer experience to optimizing inventory, columnist Emmanuel Raheb shares the keys to a successful holiday season.
Events & AwardsOct 22, 2024
WJA Foundation Names First Winner of Hedda Schupak Scholarship Journalist Priya Raj plans to use the scholarship funds to further her media qualifications and amplify marginalized communities.
MajorsOct 22, 2024
WNBA Champions New York Liberty Take Home Tiffany & Co. TrophyIt marks the first championship win in the team’s 28-year history.
Brought to you by
Enhance Your Expertise with IGI’s In-Person Courses in NYCThis fall, sharpen your skills in jewelry grading, quality control and diamond assessment.
SourcingOct 21, 2024
De Beers to List Single Country of Origin for Some of Its Diamonds It will start with rough diamonds that are larger than 1.25 carats and later expand to rough diamonds that are above 1 carat.
Weekly QuizOct 18, 2024
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CollectionsOct 21, 2024
Pandora Turns Things Upside Down in New ‘Stranger Things’ CollectionThe capsule collection is inspired by friendship and connection, with a nod to ‘80s fashion.
AuctionsOct 18, 2024
Piece of the Week: Babe Paley’s Clip-Brooch NecklaceThe New York socialite’s elegant, transformable piece from the 1960s is headed to auction later this month.
Brought to you by
Why You Can't Miss JA New York This FallDon't miss this one-stop-shop in October, curated with buyers’ needs in mind.
Recorded WebinarsOct 18, 2024
Watch: 2 Experts on the Challenges of Appraising Lab-Grown DiamondsTexas jeweler Susan Eisen and NAJA’s Gail Brett Levine discuss how lab-grown diamonds have altered the landscape for jewelry appraisers.
CrimeOct 18, 2024
The End of an Era: John Kennedy Reflects On 32 Years at JSA On the verge of retirement, Kennedy recounts the most stressful stretch of his time at JSA and reveals what he’ll miss about the industry.
MajorsOct 17, 2024
Retailer Hall of Fame 2024: Gina DrososSignet Jewelers CEO Gina Drosos’ secrets to success are listening to her team and leaning on data to make decisions.
AuctionsOct 17, 2024
Shirley Bassey’s ‘Baignoire’ Breaks Auction Record Part of the Welsh singer’s extensive jewelry collection, the bathtub-shaped Cartier watch went for nearly $72,000 at Sotheby’s Paris.
GradingOct 17, 2024
Renowned Gemologist and Author Alan Hodgkinson Dies at 87 He dedicated his life to researching, writing, and speaking about gemstones in the hope he could inspire others to share his passion.
Policies & IssuesOct 17, 2024
Ethical Gem Fair Returns to BrooklynThe event is slated for Oct. 17-19.
SourcingOct 17, 2024
Gem Legacy Adventures Announces 2025 Trip 12 spots are available for travelers to visit Northern Tanzania and Southern Kenya from July 25 to Aug. 4.
IndependentsOct 16, 2024
Retailer Hall of Fame 2024: Ronald Leitzel and Tonia Leitzel UlshThough they didn’t grow up together, siblings Ronald Leitzel and Tonia Leitzel Ulsh have grown together as co-owners of Mountz Jewelers.
CrimeOct 16, 2024
Two Arrested in Home Invasion Murder of 72-Year-Old Detroit JewelerThe men allegedly posed as employees of a local energy company to gain entry to Hussein Murray’s home and then killed him in the basement.
FinancialsOct 16, 2024
LVMH Jewelry, Watch Sales Down 5 Percent So Far This Year Sales slipped 4 percent in the third quarter in an environment the company described as economically and politically uncertain.
CollectionsOct 15, 2024
Miseno Celebrates 10 Years With High Jewelry, New HiresThe Italian brand is also releasing a coffee table book and opening its headquarters and workshop in Valenza, Italy.
IndependentsOct 15, 2024
Retailer Hall of Fame 2024: Craig and Judd Rottenberg The pair of brothers, each with his own strengths, takes a divide-and-conquer approach to bettering the stores they grew up working in.
SourcingOct 15, 2024
Petra’s Sale of Koffiefontein Diamond Mine ApprovedThe mining company is set to hand over the South African diamond mine to an affiliate of Stargems Group by the month’s end.
MajorsOct 15, 2024
Sy Kessler Celebrates 56 Years in BusinessThree generations of the Kessler family have been a part of the Dallas-based company.
AuctionsOct 11, 2024
Bonhams Reports ‘Fierce Bidding’ for Dianne Feinstein’s Jewels All 74 lots of jewelry belonging to the late Democratic senator found buyers at Bonhams Los Angeles.
CollectionsOct 11, 2024
Piece of the Week: Gemfields x Kimberly McDonald Jewelry SuiteThe two collaborated on a necklace and a pair of earrings that praise the beauty of Zambian emeralds.
MajorsOct 11, 2024
The Kingswood Company Launches New Retail Fixture ProgramRetailers can move jewelry care lines off countertops with the fixtures, which were designed for a “sophisticated retail environment.”
Events & AwardsOct 11, 2024
ICA Congress Goes to BrazilThe 20th ICA Congress is slated for May 19-22 in Brasília, Brazil.
MajorsOct 10, 2024
Why Ritani Is Partying Like It’s 1999The jeweler is celebrating its 25th anniversary with a throwback campaign.
