Consumer confidence was supposed to fall slightly to end the year and instead we saw a big jump to close out 2022, according to the Conference Board.
- M-O-M: The Consumer Confidence Index increased in December following back-to-back monthly declines to108.3, this is 6.9 points higher than last month and the highest reading since February.
- Y-O-Y: Despite the big jump, consumer confidence is actually down 7.5 points from the same time last year.
All Around Gains. Both the present and expectation index were up in December giving some hope for 2023.
- The Present Situation Index increased to 147.2 from 138.3 last month.
- The Expectations Index improved to 82.4 from 76.7 last month.
Analysis. Lynn Franco, Senior Director of Economic Indicators, said December saw improvements in a lot of categories except big ticket items. “… Indexes improved due to consumers’ more favorable view regarding the economy and jobs. Inflation expectations retreated in December to their lowest level since September 2021, with recent declines in gas prices a major impetus. Vacation intentions improved but plans to purchase homes and big-ticket appliances cooled further.”