Consumer confidence continues to be strong, as demonstrated during a strong holiday season for spending.
For the third straight month, a report from The Conference Board, a business research group that monitors such things, said Tuesday its consumer confidence index went up. It’s at 114.8 for January, up six points from December.
The index measures how Americans are feeling about current economic conditions and their outlook for the next six months. The Associated Press reported that the confidence level is at its highest level since December 2021.
Anxiety over the possibility of an economic recession in the next 12 months continued to fade for most Americans, the AP reported.
Consumer spending accounts for about 70% of U.S. economic activity, so economists pay close attention to consumer behavior as they take measure of the broader economy.
The index measuring Americans short-term expectations for income, business and the job market rose to 83.8 from 81.9 in December.
Consumers’ view of current conditions jumped to 161.3 from 147.2 the previous month.
The government said last week the economy expanded at a 3.3% annual pace in the final three months of last year. Solid consumer spending propelled the growth, capping a year that had begun with widespread expectations of a recession but instead produced a healthy expansion.
