Consumer confidence rose in November, reaching its highest level in more than a year, as Americans reacted to an improving economy and the return of Donald Trump as president.
conference board consumer confidence index Data released Tuesday showed the index rose to 111.7 from a revised 109.6 in October, the highest reading since July 2023.
The Conference Board said current economic conditions, particularly improved views on the labor market, drove the improvement.
“Consumer confidence continued to improve in November, reaching its highest level in two years,” he said. Dana M. Peterson, Chief Economist At the conference board. “November's increase was primarily driven by consumers' more positive assessment of the current situation, particularly regarding the labor market. Compared to October, consumers were also significantly more positive about their future employment prospects. Consumers' expectations for future economic conditions remained unchanged and were slightly less optimistic about future incomes.''
According to numerous surveys, President Trump's election appears to have increased optimism among consumers and businesses. The conference committee does not directly ask questions about election effects or respondents' political affiliation. The number of responses to posts related to politics increased sharply, exceeding the level in 2020, but falling below the level in 2016.
Confidence soared among younger consumers in November, with consumers under 35 seeing the biggest increase. In contrast, confidence among people aged 35 to 54 fell slightly following a strong rise in the previous month. Across income groups, confidence rose across the board, except at the extremes of households with incomes above $125,000 and those with incomes below $15,000. On a six-month rolling average, consumers under 35 and households with incomes over $100,000 continue to show the highest levels of trust.
The expectations index, a measure of consumer sentiment about the future, rose to 92.3, the highest level since December 2021. Earlier this year, the index languished in recession territory as consumers faced persistently high prices and economic uncertainty.
Although inflation has slowed significantly from its 2022 highs, consumers are still suffering the weight of much higher price levels than they would have been without the period of high inflation. The low unemployment rate also supports strong consumer spending and keeps the economy on a growth path.
The overall index remains below pre-pandemic levels (2019 average was 128), confirming some continued caution. Nevertheless, this upward trend shows that Americans are regaining confidence as the holiday season begins.
