U.S. consumer confidence jumps, stocks rise

The Conference Board’s consumer confidence index jumped to 131.6 this month from 126.5 in December. Economists polled by Dow Jones has expected consumer confidence to rise to 128. U.S. stocks ticked higher following the data’s release, with the Dow Jones Industrial Average trading around its session high.

U.S. consumer confidence - Apple logoConsumers’ assessment of current conditions improved in January. Those claiming business conditions are “good” increased from 39.0 percent to 40.8 percent, while those claiming business conditions are “bad” decreased, from 11.0 percent to 10.4 percent. Consumers’ appraisal of the job market also improved. Those saying jobs are “plentiful” increased from 46.5 percent to 49.0 percent, while those claiming jobs are “hard to get” declined, from 13.0 percent to 11.6 percent.

Consumers were also more optimistic about the short-term outlook. The percentage of consumers expecting business conditions will improve over the next six months was virtually unchanged at 18.8 percent, while those expecting business conditions will worsen declined from 8.8 percent to 8.4 percent.

Consumers’ outlook for the labor market was more upbeat. The proportion expecting more jobs in the months ahead increased from 15.5 percent to 17.2 percent, while those anticipating fewer jobs declined from 13.9 percent to 13.4 percent. Regarding their short-term income prospects, the percentage of consumers expecting an improvement declined from 22.7 percent to 22.0 percent, while the proportion expecting a decrease was virtually unchanged at 7.7 percent.

MacDailyNews Take: The tide continues to rise! A strong economy obviously benefits makers of coveted goods such as Apple. It also benefits AAPL shareholders. Plus the multi-year super cycle that’ll be kicked off by this year’s “iPhone 5G” looms!

1 Comment

  1. Context. Consumer confidence rises, while business investment continues to fall. This site and a few of its least informed posters love to spin half the story when the reality is DEFINITELY not all record-setting sunshine and blue skies.


    more context:

    CBO predicts 2.2% growth for 2020, with growing risk from an annual $US 1.015 trillion budget deficit. CBO also noted that conditions will lead to “higher inflation and interest rates after a decade in which both remained low, on average.”


    “New orders for key U.S.-made capital goods dropped by the most in eight months in December and shipments were weak, suggesting business investment contracted further in the fourth quarter and remained a drag on economic growth.”

    “The Atlanta Fed is forecasting GDP to rise at a 1.9% annualized rate in the fourth quarter. The economy grew at a 2.1% rate in the July-September period. The government will publish its snapshot of fourth-quarter GDP on Thursday.”

    Correct me if I’m wrong, but weren’t y’all disgusted about weak 2% growth that happened before the current potus claimed he would deliver somewhere between 4 and 8% GDP growth? Why is 2% now considered amazing? Moreover, why would you ever expect an aging nation to sustain growth multiples of times greater than its natural population growth through isolationism and trade disruption? Please explain, Con Don lovers.

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