CB Consumer Confidence Beats Analyst Expectations

Key Insights

• CB Consumer Confidence increased from 101 in November to 110.7 in December. 
• Present Situation Index improved from 136.5 to 148.5.
• Expectations Index grew from 77.4 to 85.6.

On December 20, the Conference Board released CB Consumer Confidence report for December. The report indicated that CB Consumer Confidence improved from 101 in November (revised from 102) to 110.7 in December, compared to analyst consensus of 104.

Present Situation Index increased from 136.5 in November to 148.5 in December, while Expectations Index improved from 77.4 to 85.6. The strong increase in the Expectations Index is especially interesting as values below the 80 level are historically associated with recession.

The Conference Board commented: “December’s increase in consumer confidence reflected more positive ratings of current business conditions and job availability, as well as less pessimistic views of business, labor market, and personal income prospects over the next six months.”

U.S. Dollar Index settled near the 102.25 level after the release of CB Consumer Confidence report. The significant improvement in consumers’ mood signals that U.S. will likely avoid a recession, which is in line with many forecasts for the next year. However, Treasury yields are moving lower, which is bearish for the U.S. dollar.

Gold pulled back towards the $2035 level. While falling Treasury yields are bullish for gold markets, traders are waiting for stronger catalysts that could push gold above the $2050 level.

SP500 made an attempt to settle above the 4780 level as traders reacted to the report. The general market mood remains extremely bullish, and traders are waiting for new highs ahead of Christmas.

For a look at all of today’s economic events, check out our economic calendar.