U.S. Consumer Confidence Bounces Back Near Pre-Shutdown Levels

(RTTNews) - With sentiment regarding current conditions climbing to a five-year high, the Conference Board released a report on Tuesday showing that its U.S. consumer confidence index rebounded by more than expected in the month of December.

The Conference Board said its consumer confidence index jumped to 78.1 in December from 72.0 in November. Economists had expected the index to climb to 76.8 from the 70.4 originally reported for the previous month.

Lynn Franco, Director of Economic Indicators at the Conference Board, noted that the rebounded lifted the index back near pre-government shutdown levels. The index came in at 80.2 in September.

The report showed that the present situation index climbed to 76.2 in December from 73.5 in November, reaching its highest level since April of 2008.

Consumers saying current business conditions are "good" edged down to 19.6 percent from 20.4 percent, but those claiming conditions are "bad" fell to 22.6 percent from 24.6 percent.

The Conference Board said the appraisal of the job market was also more upbeat, with those saying jobs are "plentiful" inching up to 12.2 percent from 12.0 percent, while those saying jobs are "hard to get" dropped to 32.5 percent from 34.1 percent.

The report also said the expectations index jumped to 79.4 in December from 71.1 in November, as consumers expecting business conditions to improve over the next six months rose to 17.2 percent from 16.7 percent and those expecting business conditions to worsen fell to 14.0 percent from 16.1 percent.

Consumers' outlook for the labor market was also considerably more optimistic, although they were moderately more pessimistic about their earnings prospects.

Peter Boockvar, chief market analyst at the Lindsey Group, said, "Bottom line, while off the high of the year at 82.1 in June, confidence at 78.1 is finishing 2013 above the 2012 close of 66.7."

"It's a far cry from the 25.3 print at the trough in February 2009 but still well off the highs of 111.9 seen in the last expansion and the 144.70 read in January 2000," he added. "We're in an economic recovery but this one has a different feel than some of those previously seen."