US consumer confidence improved in November, though by a slightly smaller margin than anticipated, while new home sales saw a significant decline, according to reports released on Tuesday.
US consumer confidence ticks higher
The Conference Board Consumer Confidence Index rose to 111.7 in November, up 2.1 points from 109.6 in October, falling short of the expected 112.0.
The Present Situation Index, which reflects consumers' views on current business and labor market conditions, increased by 4.8 points to 140.9.
The Expectations Index, which gauges consumers’ short-term outlook on income, business, and labor market conditions, rose by 0.4 points to 92.3, remaining well above the 80 threshold that typically signals an impending recession.
At the same time, average 12-month inflation expectations dropped to 4.9% in November, down from 5.3% in October, marking the lowest level since March 2020.
Conference Board comment
"Consumer confidence continued to rise in November, reaching the upper end of the range observed over the past two years," said Dana Peterson, chief economist at the Conference Board.
"The increase was primarily driven by more favorable consumer views of the current situation, especially regarding the labor market. Compared to October, consumers were notably more optimistic about future job availability, which reached its highest level in nearly three years. However, expectations for future business conditions remained unchanged, and consumers were slightly less optimistic about future income."
