U.S. Consumer Confidence Rises On Lower Gas Prices
Falling gas prices perked up consumers in November, according to the monthly Conference Board index, which reported Tuesday that confidence rose from a record low in October.
The November consumer confidence index rose to 44.9 – still a relatively low result — from an upwardly revised October reading of 38.8. Economists surveyed by MarketWatch had expected a November reading of 39.
One-year inflation expectations among consumers declined to 5.9% in November from 6.8% in the prior month.
“Inflation expectations, which have been at historically high levels in recent months, subsided considerably as a result of falling gas prices,” said Lynn Franco, director of the Conference Board’s Consumer Research Center.
Overall consumers’ expectations were less pessimistic, with that index rising to 46.7 from 35.7. Those expecting business conditions to worsen over the next six months declined to 28.1% from 36.5%, and those expecting fewer jobs declined to 33.3% from 41.5%.
However, consumers’ view of current conditions worsened in November, with that index declining to 42.2 from 43.5. Those saying jobs are “hard to get” rising to 37.2% from 36.6% in the prior month. Those saying business conditions are “bad” rose to 40.3% from 37.1%.