Consumer Confidence Reaches 52.9; Case-Shiller 20-City Price Index Rises for Fifth Consecutive MonthDec 30 2009
December 30, 2009 - Consumer confidence has hit a new two-year high, reaching 52.9 for December. Coming up from a revised 50.6 in November, December's numbers show that consumers are adopting a budding optimism about the economy.
The expectation index, which measures consumers' outlooks over the next several months, reached 75.6, up from the 70.3 from November. Nonetheless, a survey of consumers' current situations has dropped to 18.8 this month, reaching its lowest dipping point since February 1983.
Along with the consumer confidence report, October's Standard & Poor's/Case-Shiller Price Index, which follows sales in 20 major cities, was released yesterday. Rising for the fifth consecutive month, the index brought out a seasonally adjusted increase of 0.4%.
Now that the tax credit has been extended to April 2010, there is a lack of urgency amongst home buyers. Echoing these sentiments, the rate of increase is not nearly as high as it was in the booming summer months.