The latest key U.S. economic data reported positive as U.S. consumer confidence rose in December more than expected as the job and economic prospects of Americans improved. This carries an indication that there is a recovery in the economy despite growing concerns over the contagion of Omicron variants and price increases.
The Conference Board index recorded an increase to a reading of 115.8 from a revised reading of 111.9 in November based on the report released. This reading far exceeded the expectations of Bloomberg economists who are targeting a reading of 111.
The data suggests consumers remain optimistic despite new restrictions related to Covid-19 in some parts of the country as the spread of the variant continues to be a concern. Waima so, Federal Reserve Chairman Jerome Powell and most economists argue that it is likely to have a smaller economic impact as U.S. citizens are already able to adjust to this epidemic.
On the other hand, households in December expressed some concern as inflation remained high. Yet they are optimistic it will decrease next year.
The Conference Board expectations index rose to a five -month high of 96.9
"Looking ahead to 2022, both consumer confidence and spending will continue to suffer from rising prices and expectations of a surge in Covid-19 cases by the end of the year," said Lynn Franco, senior director of economic indicators at the Conference Board, in a statement.
