The Conference Board’s Consumer Confidence Index is at its highest level since the start of the recession. (See Conference Board website for more info.) The Present Situation Index increased to 25.0 from 20.2. The Expectations Index increased to 76.5 from 75.9 last month.
Florida’s consumer confidence rose in January by five points to 74, also to its highest level in more than 2 years, according to the University of Florida survey.
This month’s large increase in consumer confidence was unexpected and refreshing to see that it is broad-based across age and income levels. All five components making up the index increased.
From UF press release:
- The biggest jump was in perceptions of whether it is a good time to buy big-ticket consumer items, which rose eight points to 83.
- Perceptions of personal finances now compared with a year ago increased five points to 50, while expectations of personal finances a year from now rose five points to 85.
- Perceptions of U.S. economic conditions over the next year rose six points to 73, while perceptions of U.S. business conditions over the next five years rose four points to 78.
From Conference Board report:
- Consumers' assessment of present-day conditions was, on the whole, more positive than last month. Those stating business conditions are "good" increased to 9.0 percent from 7.5 percent, however, those stating business conditions are "bad" increased to 46.1 percent from 45.7 percent. Consumers' assessment of the labor market improved moderately. Those claiming jobs are "hard to get" declined to 47.4 percent from 48.1 percent, while those claiming jobs are "plentiful" increased to 4.3 percent from 3.1 percent.
- Consumers' short-term outlook, while overall more positive, was somewhat mixed. The percentage of consumers expecting an improvement in business conditions over the next six months decreased to 20.9 percent from 21.2 percent, while those anticipating conditions will worsen increased to 12.7 percent from 11.8 percent. Regarding the outlook for the labor market, those expecting fewer jobs decreased to 18.9 percent from 20.6 percent. However, those expecting more jobs to become available in the months ahead declined to 15.5 percent from 16.4 percent. The proportion of consumers anticipating a decrease in their incomes declined to 16.2 percent from 18.4 percent.
Hope this helps.
Note- the Conference Board’s numbers measure mood across country. UF tracks Florida consumer data.