WASHINGTON (AP) — The confidence of American consumers rebounded this month to end the year on a high note despite high inflation, rising interest rates that have made credit cards and mortgages more expensive, and growing anxiety about a possible recession.
The Conference Board reported Wednesday that its consumer confidence index rose to 108.3 in December, up from 101.4 in November. It’s a sharp rebound, pushing the index to its highest level since April. Last month’s figure was the lowest since July.
The business research group’s present situation index — which measures consumers’ assessment of current business and labor market conditions — also rose, to 147.2 this month from 138.3 in November.
The board’s expectations index — a measure of consumers’ six-month outlook for income, business and labor conditions — rose to 82.4 from 76.7. Readings near or below 80 are associated with recession.
Lynn Franco, senior director of economic indicators at the Conference Board, noted that inflation expectations retreated in December to their lowest level since September of last year, mostly due to recent declines in gas prices. The number of people saying they planned to go on vacations rose, but the number of those intending to purchase homes and big-ticket appliances declined.
