US Consumer Confidence Improves in December With Rising Household Income

Source: University of Michigan 

The Index of Consumer Sentiment was recorded at 70.6 in December, up 4.7% from the previous month but down 12.5% from the prior year. DJI is up +0.62%, EURUSD is down -0.09%.

• The rise in consumer confidence reflected projected gains in household income, with consumers expecting a further surge of 2.8% next year, up from 1.8% the previous December.
• Surveys of Consumers chief economist Richard Curtin says the announced increment in Social Security payments of 5.9% next year helped to raise consumer confidence. A 5.0% increment in wages to the youngest workers also played a part.
• The rise in consumer confidence was also reflected in the judgment of current economic conditions, with the index up by a monthly 0.8% to 74.2. The index is still down 17.6% from the prior year.
• The index of consumer expectations also rose, with the gauge now at 68.3%, which is 7.6% above last month, but below the prior year by 8.4%.
• Curtin warns that consumer confidence could be depressed in January due to the Omicron spread, although he says it is still early to judge the impact.