US consumer confidence improved more than expected in December despite inflation data and the rapid spread of the Omicron variant of the coronavirus.
The Consumer Confidence Index prepared by The Conference Board, stood at 115.8 points compared to 111.9 units in November.
This result is slightly better than expected by analysts, who forecast 111.5 points.
“Consumer confidence improved even more in December, after a very modest increase in November,” said Lynn Franco, the agency’s director of economic indicators.
Meanwhile, concerns about inflation subsided after hitting a 13-year high last month, as did concerns about Covid-19, despite reports of continued price increases and the emergence of the Omicron variant. Franco said in a statement.
Looking ahead to 2022, both consumer spending and confidence will continue to face headwinds from rising prices and an expected increase in the pandemic in the winter, he added.
According to The Conference Board, 18% of consumers expect their income to increase in the short term, up from 18.9% last month, and 11.5% expect their income to decrease, from 11.7% previously.
They revise GDP upwards
In other data released yesterday, December 22, the United States (EU) revised its economic growth slightly upwards for the third quarter of 2021.
The Gross Domestic Product increased at an annualized rate of 2.3% in the July-September quarter, above the 2.1% estimated last month, according to the third reading prepared by the Department of Commerce.
This growth came after a 6.7% expansion in the second quarter.
The slower pace of growth in the last quarter also reflected the shortage of motor vehicles due to the difficulties in global supply chains, as well as the decrease in the aid that the Government allocates to companies, households and local governments due to the pandemic.
Growth was also hampered by Hurricane Ida.
However, the economy has picked up speed. Consumer spending increased in October and manufacturing has been buoyant.
According to a Reuters survey of economists, this year’s growth could be 5.6%, the highest since 1984. The economy contracted 3.4% in 2020 as a result of the impact of the Covid pandemic.
Sale of homes
On the other hand, the sale of used homes grew in the US in November for the third consecutive month, in a favorable context for mortgage loans.
Last month, 6.46 million homes changed ownership.
This figure is 1.9% higher than that of October, according to the National Federation of Real Estate Agents (NAR), although the figures are slightly lower than expected by analysts, who calculated 6.5 million transactions.
“Determined buyers were able to get a good before real estate loans rise in the coming months,” said Lawrence Yun, chief economist at NAR.
The specialist foresees an interest rate hike for mortgage loans next year. Median home price stood at $ 353,900 in November, similar to the previous month, but 13.9% higher than the same month last year.
Reference-www.eleconomista.com.mx