WASHINGTON (AP) -
U.S. consumer confidence rose this month to
its highest level in almost five years, helped by a better outlook for
hiring over the next six months.
The Conference Board said
Tuesday that its consumer confidence index rose to 73.7 in November from
73.1 in October. Both are the best readings since February 2008.
The index is still below
the level of 90 that is consistent with a healthy economy. It last
reached that point in December 2007, the first month of the Great
Recession. But the index has increased from the all-time low of 25.3
touched in February 2009.
Higher consumer confidence
could translate into a more robust holiday shopping season and stronger
economic growth. Consumer spending drives nearly 70 percent of economic
activity.
The report also supported
the findings of a separate survey from the University of Michigan
released last week, which showed consumer sentiment at a five-year high.
Still, both surveys increased at slower rates than the previous month.
Americans are growing more
optimistic because they see the job market improving, the Conference
Board said. Employers added 171,000 jobs in October and more jobs were
created in August and September than first thought.
The Conference Board
surveyed approximately 2,500 households in the first two weeks of the
month. Those surveyed were asked how they felt about the economy and job
market now, as well as where they see both going in six months. They
were also asked if they planned to make a major purchase or take a
vacation in the next six months.
The survey found that most
people viewed current conditions the same as in October. But the
percentage of Americans who expect more jobs to be available in the next
six months rose to 20.3 percent, from 19.7 percent in October.
And the percentage of
Americans who say jobs are "plentiful" rose to 11.2 percent from 10.4
percent in the previous month. That's the highest level in four years
and a good sign for hiring this month.
More Americans said they
plan to buy a home, an appliance or take a vacation, the survey found.
About 6.9 percent said they planned to buy a home, the highest on
record. But the percentage expecting to buy a car fell.
Confidence among households
earning $50,000 and higher slipped to 88 from 91.7 in October. But
among the poorest households, those earning less than $15,000,
confidence jumped to 56.2 from 50.2.
Many of the participants in
the Michigan survey said they expect the unemployment rate to drop over
the next six months. Still, some expressed concerns about the "fiscal
cliff," a package of sharp tax increases and spending cuts that will
take effect next year unless Congress and the White House can replace
them. The tax increases would leave consumers with much less money to
spend.
A better housing market may also be contributing to consumers' better mood.
Standard &
Poor's/Case-Shiller reported Tuesday that its 20-city index of home
prices rose 3 percent in September compared with the same month last
year. Prices also gained 3.6 percent in the July-September quarter
compared with the same quarter in 2011.
