The Conference Board’s consumer confidence index reached 111.7 in November, up from 109.6 in October. The rise reflects stronger consumer sentiment about the present labor market conditions.
Labor Market Drives Optimism
According to Dana Peterson, chief economist at The Conference Board, consumers feel “substantially more optimistic” about job availability, with confidence in the labor market at a three-year high.
Mixed Views on Future Prospects
While confidence in the current job market surged, expectations about future business conditions remained unchanged. Consumers were slightly less optimistic about income prospects in the coming months.
Younger Consumers Lead the Shift
The survey highlighted improved confidence among consumers under the age of 35, signaling a generational shift in economic outlook.
Fewer Recession Fears
The proportion of Americans expecting a recession in the next 12 months dropped to its lowest level since July 2022. The expectations index rose slightly to 92.3, staying above the recession threshold.
Experts Urge Caution
Despite rising sentiment, economists warned of underlying issues. Robert Frick of Navy Federal Credit Union noted a decline in job openings and fewer workers quitting jobs, reflecting cautious labor trends.
Political Influence on Confidence?
Pantheon Macroeconomics’ Samuel Tombs suggested the rise in confidence might partly reflect “euphoria among Republicans” following President-elect Donald Trump’s recent victory, drawing parallels to similar trends in late 2016.
