US Consumer Confidence jumps in December despite rising inflation

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US Consumer Confidence jumps in December despite rising inflation

American consumers were more confident about the economy in December and less concerned about inflation, despite the rise of the Omicron variant of Covid-19, according to a survey released Wednesday.

The Consumer Confidence Index jumped nearly four points to 115.8 compared to the previous month, a four-point increase in the Conference Board's consumer confidence index.

The November index, which was originally showing a two-point drop, was revised up to show a modest gain, the research group said.

Consumers remain optimistic despite the numerous challenges, setting the stage for continued growth in early 2022, said Lynn Franco, head of economic indicators at the Conference Board.

Concerns about inflation after hitting a 13 year high last month, as well as concerns about Covid, the US inflation has gone up to a close to 40 year high due to global supply chain issues and worker shortages.

An increasing number of shoppers say that they plan to shell out money for major purchases in the coming months, to buy homes, cars, major appliances, and take vacations.

Franco cautioned that consumers and confidence will continue to struggle with rising prices and an anticipated winter surge of the Pandemic in the next 2022, but the reality is that both confidence and consumer spending will continue to rise until the end of the year 2022, he said.

The index measuring feelings about the present situation dipped slightly, but remains very high, while sentiment improved about the outlook for business conditions, jobs and income over the next six months, due to a decline in those expecting things to get worse.