- Lynn Franco, director of economic indicators at The Conference Board
US consumer confidence edged up in December, as households became more optimistic about the domestic economy amid falling oil prices, which make families feel more confident about their finances, as well as ameliorating jobs market, which is set to provide the most job vacancies in 15 years. The consumer confidence index edged up to 92.6 points in December, while analysts had expected 94 points, and following a revised 91.0 points from 88.7 in November, the Conference Board reported. The indicator hit a recovery high at 94.1 in October. Consumer expectations for economic activity over the next six months came in at 88.5 following November's revised 89.3, while the present situation index soared to 98.6 from a revised 93.7 in the previous month. The Conference Board's present situation index is now at the highest level since February 2008.
Consumers are the main driver of economic growth in the world's number one economy, particularly in the final quarter of the year when households buy gifts as well as other items during the Christmas holiday season. Household expenditures account for around 70% of total economic output. Economists believe that if low oil prices are sustained for a few months, it should result in greater consumption.
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