- Ted Wieseman, an economist at Morgan Stanley
US consumer confidence strengthened in December amid robust economic data and falling unemployment. According to the Conference Board, consumer confidence index rose to 96.5 in December, up from 96.5 in the preceding month. In September, the reading surged to the highest level since August 2007, when consumer confidence came in at 105.6. Steady growth of the world's number one economy, recent decline in the jobless rate and modest growth of retail sales influenced Americans view about the domestic economy, labour market and spending. GDP increased by an annualized 2.0% in the third quarter, beating the forecasts calling for a 1.9% clip, according to the Department of Commerce. In the previous three-month period, the economy had expanded by a much more robust 3.9%.
A separate report showed the US goods trade shortfall shrank slightly in November, as both imports and exports declined, the Commerce Department said. The trade gap narrowed 1.3% in November to $60.5 billion from a revised $61.3 billion in October. Exports of goods decreased 2% to $121 billion in November, while imports declined 1.8% to $181.5 billion, with the drop concentrated in consumer goods.
© Dukascopy Bank SA