U.S. consumer confidence increased to a 16-month high in November amid optimism over the labour market, expectations for lower inflation and higher stock prices over the next year.
The Conference Board said its consumer confidence index increased to 111.7 this month, the highest since July 2023, from a revised 109.6 in October. “November’s increase was mainly driven by more positive consumer assessments of the present situation, particularly regarding the labour market,” said Dana Peterson, the chief economist at the Conference Board.
Stocks on Wall Street traded higher. The dollar gained versus a basket of currencies, lifted by Trump’s tariff pledge. U.S. Treasury yields rose. “While the labour market differential still indicates that the unemployment rate will stay above 4 per cent in the near term, the details do not signal a rise in permanent layoffs,” said Grace Zwemmer, an associate U.S. economist at Oxford Economics. “This bodes well for our outlook that consumer spending growth will remain solid in the coming year.”