December US IBD/TIPP Optimism Index Improves Modestly, Still Indicates Pessimism

Dec, 07, 2021 MT Newswires

News effects the following: Dow Jones (Us30) , S&P500 (SPX500)

The first look at consumer confidence for December improved modestly from November, with the Investors' Business Daily's monthly index rising to 48.4 from 43.9 in the previous month on improvements in all three of its components.

While posting the first increase in five months, the index still points to heightened concerns, particularly about inflation. A reading above 50 suggests optimism, while a reading below 50 suggests pessimism. The December index is well below the pre-COVID February 2020 reading of 59.8.

"Although inflation is still a big concern for the majority of Americans - 84% according to our survey - financial stress is easing a bit and overall quality of life improved this month," said Ed Carson, IBD's news editor. "This signals that consumers are more positive about their prospects than they've been in recent months. With plenty of jobs available, and workers in the drivers' seat, people are feeling alright about their personal finances, though you're still not likely to see lavish spending this holiday season."

IBD said that 67% of respondents reported that they intend to spend less on holiday gifts this year. The six-month outlook index rose to 42.8 in December from 38.6 in November, the outlook for personal finances increased to 54.9 from 51.9 and the measure of confidence in Federal Economic Policies moved up to 47.5 from 41.1.

The Financial Related Stress Index fell to 65.1 in December from 67.3 in November, an indication of lower, but still heightened, financial concerns.

The head of polling company TechnoMetrica, Raghavan Mayur, said the survey data showed a recovery from November's bottom, but concerns about inflation, particularly for gasoline and food, and the emergence of the omicron variant mean uncertainty for the period ahead.

14 views0 comments