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Washington - US consumer confidence declined in December from a 17-year high as Americans became less upbeat about the outlook for the economy and job prospects, according to figures on Wednesday from the New York-based Conference Board.
Highlights of consumer confidence (December)
• Confidence index fell to a three-month low of 122.1 (est. 128) from a revised 128.6 in November.
• Present conditions measure rose to 156.6, the highest since mid-2001, from 154.9.
• Consumer expectations gauge dropped to 99.1, the lowest since November 2016, from 111.
Key takeaways
Even with the latest cooling off, Americans remain upbeat - this month was the strongest December since 2000. While expectations about business conditions and job availability declined, the share of respondents who expected their incomes to rise in the next six months increased to the highest since March.
The data corroborate other measures showing people remain sanguine about the economy and their own situation. While the University of Michigan’s consumer sentiment index fell in December, it is also still elevated by historical standards.
Economist views
“Despite the decline in confidence, consumers’ expectations remain at historically strong levels, suggesting economic growth will continue well into 2018,” Lynn Franco, director of economic indicators at the Conference Board, said in a statement.
Other details
• 20.2% of consumers said they expect better business conditions in next six months, down from 23.1% in November .
• Share of households who expect incomes to rise in next six months increased to 22.3%, up from 20.3%.
• Share of those who said more jobs will be available in coming months dropped to 18.4% from 21.3%.
• Share saying jobs are currently hard to get fell to 15.2, the lowest since mid-2001.
• Buying plans were mixed, with a smaller share planning to purchase a new car and greater percentages expecting to buy new homes and major appliances.
• Share of respondents who said jobs were currently plentiful fell to 35.7% from 37.5%.
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