U.S. Consumer Confidence Takes Unexpected Dip In December
Date
12/24/2024 6:15:36 AM
(MENAFN- The Rio Times) The latest Consumer Confidence index (CCI) report reveals a surprising downturn in December 2024. The index, published by The conference Board, fell 8.1 points to 104.7, catching many economists off guard.
This decline marks a significant shift in consumer sentiment, potentially signaling economic uncertainties ahead. The Present Situation Index, which measures current economic conditions, saw a modest decrease of 1.2 points to 140.2.
However, the Expectations Index, reflecting short-term outlooks, plummeted 12.6 points to 81.1, dangerously close to the 80-point threshold often associated with recession risks.
This shift in consumer attitudes carries weight for several reasons. Consumer spending drives approximately two-thirds of U.S. economic activity, making consumer confidence a key indicator of potential economic trends.
A sustained decline in confidence could lead to reduced spending, impacting overall economic growth. The decline was not uniform across demographics.
Consumers over 35 and those with household incomes between $25,000 and $100,000 showed the most significant drops in confidence. Younger consumers and those at the highest income levels remained relatively optimistic.
Dana M. Peterson, Chief Economist at The Conference Board , noted that the recent rebound in consumer confidence failed to hold in December.
Consumers expressed less optimism about future business conditions and incomes, while pessimism about employment prospects increased.
The stock market outlook also dimmed slightly, with 52.9% of consumers expecting stock prices to rise over the next year, down from November's record high of 57.2%.
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