(AFP) – US consumer confidence languished at a multi-month low in December as a slowing job market offset better sentiment after the government shutdown ended, according to a survey released Tuesday. The Conference Board’s reading for the month was 89.1, down from the 92.9 figure and the lowest since April. The November figure was revised up from an initial 88.7, reflecting a lift from survey data collected after the government shutdown ended on November 12.
“Despite an upward revision in November related to the end of the shutdown, consumer confidence fell again in December and remained well below this year’s January peak,” said Conference Board Chief Economist Dana Peterson. The report covers part of the crucial end-of-year holiday shopping period, which can account for about one-fifth or more of retailer annual revenues.
The board pointed in particular to a drop in perceptions of the labor market, with 26.7 percent in December calling jobs “plentiful” compared with 37.1 percent a year earlier. More now say jobs are “not so plentiful” or “hard to get,” according to the survey. While consumers’ expectations index held steady in December, the present situation index plummeted compared with the prior month.
The write-in responses on surveys continued to emphasize affordability concerns such as inflation and tariffs. “The responses continued to skew pessimistic but less so than November,” said Peterson, who pointed to less negative sentiment about politics, as well as a lift from Federal Reserve interest rate cuts.
US consumer sentiment data has in recent years often been weak, while actual retail sales have sometimes topped estimates. Analysts have described the US consumer as resilient, although wealthier consumers account for a disproportionate amount of sales. Among different generations, confidence dipped across the spectrum, but consumers under 35 continued to be more confident than consumers 35 and older.
© 2024 AFP
