Consumer confidence saw an increase of 2.9 points to 102 for November, a better-than-expected reading than the 101 forecasts by economists and higher than the downwardly revised October reading of 99.1. The increase in consumer confidence has largely been attributed to improvements in consumer expectations for the economy with the most significant improvement demonstrated by those 55 and up while those in the 35-54 age group are less so.
Consumers in the survey have also signalled a willingness to increase their spending on big-ticket items such as motor vehicles and household appliances in the next six months. This is particularly significant, despite not being quantifiable as of yet, as it demonstrates that consumers still have the confidence that such items will not drop in price and therefore implies confidence in the economy. Additionally, consumers reduced their 12-month inflation expectations from 5.9% in October to 5.7%, further suggesting increasing economic expectations.
However, the report mentions that these expectations may change going forward as mortgage payments increase and student debt repayments begin to settle into the month-to-month outflows from participant’s bank accounts.
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