On Tuesday, the Conference Board said that its consumer confidence index soared to 107.1 in November, from an upwardly revised 100.8 in October. The number surpassed previous estimation of 101.8 in November, and reached nine-year high since July 2007. The increase was partially from the holiday shopping season.
According to economist Jim O’Sullivan, the result was in accordance with the growth in labor market and consumer spending. The portion of Americans saying business conditions are good increased to 29.2% from 26.5%; the portion saying conditions are bad dropped to 14.8% from 17.3% in previous month; and the portion saying jobs are plentiful rose to 26.9% from 25.3%. Under this circumstances, the outlook for labor market improved. Labor Department will release monthly employment report on Friday. As for the growth in consumer spending, the real consumer spending rose around 3.5% per year.
Most of the people took the survey before November 8, and a select few were surveyed followed the election with a deadline of November 15. Therefore, the results showed the consumer confidence before the presidential election.
“It appears from the small sample of post-election responses that consumers’ optimism was not impacted by the outcome,” said Lynn Franco, the Conference Board’s director of economic indicators. “With the holiday season upon us, a more confident consumer should be welcome news for retailers.”
In addition, the index for present conditions increased to 130.3, which is also the highest since 2007. Index of consumer expectations for the next half year rose to 91.7, which is the highest since June 2015.