The consumer confidence index, which shows how U.S. consumers feel about the economy, fell again in Dec. The indicator reflecting current conditions dropped sharply, but the short-term outlook gauge was flat.
The Conference Board, a U.S. economic research organization, said on the 23rd (local time) that the U.S. consumer confidence index for Dec. was 89.1, down 3.8 points from 92.9 in the previous month. It also missed the 91.0 forecast compiled by Dow Jones.
The present situation index, which reflects current business and employment conditions, was 116.8, down 9.5 points from the previous month. That is the lowest level since Feb. 2021, during the pandemic.
The expectations index, reflecting the short-term outlook, was 70.7, similar to the previous month. The Conference Board noted that when the expectations index falls below 80, it often indicates the possibility of a recession, and said it has remained below 80 for 11 consecutive months through Dec.
Consumer sentiment weakened, but growth indicators were strong. The U.S. Commerce Department said on the 23rd (local time) that the third-quarter gross domestic product growth rate was an annualized 4.3% from the previous quarter.