"Despite the many challenges throughout 2013, consumers are in better spirits today than when the year began''
- Lynn Franco, director of economic indicators at the Conference Board
U.S. consumer confidence rose more than expected in December amid better outlook for job gains and overall growth, reinforcing the view that the nation's economy is set to accelerate in 2014. According to the Conference Board, its index for consumer confidence advanced to 78.1 up from 72.0 in November, approaching its pre-government shutdown levels, when consumer confidence was 80.2 in September. The gauge came in well ahead of economists' expectations, who had forecasted the index to rise to 76.8. Steady job gains and stock market rally have made Americans more optimistic about the U.S. economy and hiring both now and in the next six months. The report reveals that number of consumers, who expect more jobs in the months ahead substantially rose to 17.1%, up from 13.1%. However, the proportion of people anticipating their incomes to increase fell to 13.9% from 15.3.
Meanwhile, U.S. stocks ended the year at record high, with all three major indexes recording annual gains of over 26% in 2013, the best performance in 15 years. The Dow Jones Industrial Average, which rose 26.5% for the year, added 72.37 points to 16,576.66, the biggest annual gain in 18 years. The S&P 500 ended its best year since 1997 with a 29% advance. Stocks was boosted by investors interest, which was spurred by the Fed's commitment to keep interest rates low to stimulate the world's largest economy.
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