CB Consumer Confidence Exceeds Analyst Predictions

 The Expectations Index has surpassed the significant 80 level, historically linked with economic downturns.  

Highlights

• CB Consumer Confidence rose from 101 in November to 110.7 in December.
• The Present Situation Index advanced from 136.5 to 148.5.
• The Expectations Index increased from 77.4 to 85.6.

 On December 20, the Conference Board published the CB Consumer Confidence report for December. The report revealed that CB Consumer Confidence increased from 101 in November (revised from 102) to 110.7 in December, surpassing the analyst consensus of 104.

The Present Situation Index rose from 136.5 in November to 148.5 in December, and the Expectations Index improved from 77.4 to 85.6. Notably, the substantial increase in the Expectations Index is of particular interest since values below 80 are historically linked with economic downturns.

The Conference Board remarked, "The rise in consumer confidence in December was driven by more positive assessments of current business conditions and job availability, along with less pessimistic views of business, labor market, and personal income prospects over the next six months."

Following the release of the CB Consumer Confidence report, the U.S. Dollar Index stabilized near the 102.25 level. The significant improvement in consumer sentiment suggests that the U.S. is likely to avoid a recession, aligning with forecasts for the coming year. Nonetheless, declining Treasury yields indicate a bearish sentiment for the U.S. dollar.

Gold retracted towards the $2035 level. While decreasing Treasury yields are favorable for gold markets, traders are anticipating stronger catalysts that could propel gold above the $2050 mark.

The S&P 500 index attempted to settle above the 4780 level as traders reacted to the report. The overall market sentiment remains highly optimistic, and traders are anticipating new highs leading up to Christmas.