WASHINGTON, Dec 22 - The US consumer confidence increased further in December, and suggesting that the economy would continue to expand in 2022 despite the rising resurgence of COVID-19 infection and lower fiscal stimulus.
The report by the Conference Board on Wednesday showed that more consumers plan on buying homes and putting money into major stores such as motor vehicles, and even going on vacation in the next six months. Moreover, inflation prompted the surge in demand and the economy is continuing to make up for the labor market.
These can probably help to encourage consumer spending if the government budget is less down.
The signature of President Joe Biden's $1.75 trillion domestic investment bill called Build Back Better (BBB), which aims to expand the social safety net and tackle climate change, hit a blow on Sunday when moderate Democrat Senator Joe Manchin said that he wouldn't support it. That caused economists to cut their growth predictions for next year.
"Consumers are bullish in 2022," said Robert Frick, corporate economist in the Navy Federal Credit Union in Vienna, Virginia. "This is further evidence that consumer spending will continue to rise and fuel the expansion."
The consumer confidence index for the conference board decreased to 115.8 in this month, from an upwardly revised 111.9 in November. Economists polled by Reuters predicted the index rising to 111.8 from the previously reported ten.5. The cut-off date for the survey was Dec. 16.
Consumers' appraisal of the current economic and labor market conditions a little slowed down, but their short-term outlook for income, business and labor market conditions was low, based on the Conference Board's view that "scandal for continued growth in 2022."
Consumer inflation over the next 12 months fell from 7.9% on an average of 13 years to 3%. The so-called labor market differential, derived from respondents' perceptions of whether jobs are plentiful or difficult to get, slipped to a still-high reading of 42.6 this month from 4.7%.
This measure is consistent with the unemployment rate of the Labor Department. In the past six months, the percentage of consumers who plan on buying a motor vehicle increased as a result of a buying intention for appliances like washing machines, dryers and refrigerators, as well as a desire for the consumers to buy a house and go on vacation as a holiday.
The showing of power in the nation confronting a winter wave of coronavirus infections driven by the Delta and highly contagious Omicron variants is a welcome news. Surging infections could severely reduce your growth in the first quarter.
The stock price on Wall Street was falling sharply. The dollar slipped against a basket of currencies and prices fell sharply with the US dollar.
I'm pretty much happy.
The progress of good news was enhanced by the second report published by the National Association of Realtors showing that there had been a total increase in sales in existing homes, up from nearly a quarter to a year adjusted rate of 6,46 million units in November.
But the housing market continues to be run down by a huge eviction hazard. The rise of house prices is keeping first-time buyers out of trouble.
The median price of a house grew 13,9% from a year earlier to 353,900 in November. First-time buyers accounted for 66% of its sales last month, the highest share since January 2014.
The report also incorporated data from October Consumer spending, a sharply decreasing trade deficit and a steady revival in inventories of businesses in suggesting that the economy is on track to record its best performance since 1984.
The second report from the Commerce Department on Wednesday showed gross domestic product increased by 2,3% in the l-septembre quarter, and moved above the 2,11% rate last month.
The last quarter was the slowest since the second quarter of 2020, the economy suffered a historic contraction due to the strict requirements for free the first wave of coronavirus.
The economy was resuscitated due to coronavirus infection, shortages of motor vehicles, and a decline in relief money to local businesses, households and local governments.
This has also made a huge impact on the offshore energy sector as of late August.
As for the growth in demand, the economy will have a tough season with an economically strong economic outlook, high wages, and a health backdrop, before Omicron arrived, as well as a rise in the fourth quarter, says Oren Klachkin, a phd economist at the Oxford Economics in New York.
14 out of 22 industries contributed to a GDP growth in the third quarter. Services industry output remained steady at 3,9%, led by professional, scientific and technical services, finance and insurance, administrative, waste management, accommodation and food service, and information, and partly offset the decline in retail and wholesale trading.
The exports of goods and services fell 55%, reflecting the wide decline, in which the economy was dominated by construction. The government sector increased 51%, which led to the remunition of the state and local governments.
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