The last month of 2019 saw a significant increase in consumer confidence, as the US economy seemed to have dodged the recession forecasts that many financial experts had predicted earlier in the year.
The Conference Board’s Consumer Confidence Index, a measure of consumer sentiment, climbed to a three-month high of 126.5 in December, up from a November reading of 125.5. This was the seventh consecutive month of steady consumer confidence readings in 2019.
Analysts credited low unemployment numbers, strong wages growth, and increasing consumer spending for the increase in consumer confidence. On the other hand, concerns over the threat of a recession, US-China trade tensions, and an inverted yield curve drove some of the financial pessimism during the year.
Despite these pressures, consumer confidence ended 2019 on an optimistic note, which bodes well for consumer spending and overall economic growth in 2020.
