US Consumer Confidence Rises to 8-Month High in December as Inflation Eases

The consumer confidence in the U.S. rose by more than forecast to the eight-month high in December as inflation eased and petrol prices dropped.

Data released on Wednesday (Dec 21) showed that the Conference Board’s index rose to 108.3 this month, from a previously reported 101.4 for November. This is the highest reading since April. In a Bloomberg survey of economists, the median forecast was 101.

The index of consumer confidence for the next six months rose to 82.4, its highest level since January. The group’s current conditions index increased to 147.2, a three-month high.

Gas price drops to their lowest point since the middle of 2021 have provided some respite to customers as the worst of inflation appears to have passed. According to the Conference Board, the median inflation forecast for the coming year has dropped to 5.9%.

In addition, consumers were slightly more optimistic about present and future labor-market conditions.