With the holiday shopping season fast approaching, American consumers appear to be more confident than they were a month ago.
In a report posted Tuesday to its website, the Conference Board, a business research group, said its consumer confidence index rose to 102 from 99.1 in October. That’s about a point higher than analysts had expected..
The index measures both Americans’ assessment of current economic conditions and their outlook for the next six months.
The index measuring Americans short-term expectations for income, business and job market rose to 77.8 in November from 72.7 in October, according to a report from the Associated Press. Consumer spending accounts for some 70% of U.S. economic activity, a factor in why economists pay such close attention to consumer behavior.
In September, spending by consumers rose by a 0.4%, the AP reported, even as Americans face increasing borrowing costs. After a strong summer, economists forecast that consumer spending will slow in the final three months of the year, as credit card debt and delinquencies rise and average savings fall.
Americans did cut back on retail spending in October, ending six straight months of gains, though the decline was partly driven by falling prices for both gasoline and cars.
