Consumer confidence snaps back at year end

By Jeffry Bartash

Consumer confidence index rises to 110 in December from101

The numbers: Consumer confidence jumped in December to 110 in a fresh sign of cautious optimism about the economy, a new survey showed.

The closely followed index climbed from a revised 101 in November, the Conference Board said Wednesday.

Economists polled by the Wall Street Journal had forecast the index to register 104.5.

Consumer confidence tends to signal whether the economy is getting better or worse.

Key details: A measure that looks at how consumers feel about the economy right now increased to 148.5 from 136.5 in the prior month.

A confidence gauge that looks ahead six months jumped to 85.6 from 77.4 in the prior month. It's the first time the index has topped the recessionary line of 80 in four months.

Big picture: The economy appears to have slowed since the fall because of higher interest rates, but the stock market has rallied on the assumption that the Federal Reserve is not going to raise borrowing costs any further. That's helped to give a boost to confidence along with falling gas prices.

Some economists still contend the economy is likely to decelerate to the point of recession in the months ahead . Others believe the expansion is likely to continue as the rate of inflation slows, allowing the U.S. to avoid a downturn.

Looking ahead: "December's increase in consumer confidence reflected more positive ratings of current business conditions and job availability, as well as less pessimistic views of business, labor market, and personal income prospects over the next six months," said Dana Peterson, chief economist at the Conference Board.

Market reaction: The Dow Jones Industrial Average and the S&P 500 fell slightly in Wednesday trades.

-Jeffry Bartash

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

12-20-23 1014ET

Copyright (c) 2023 Dow Jones & Company, Inc.