Investing.com - American consumer confidence increased "significantly" in November, according to the Conference Board. The New York City-based board's Consumer Confidence Index today stands at 107.1 (1985=100), up from 100.8 in October. The Present Situation Index increased from 123.1 to 130.3, whilst the Expectations Index improved from 86.0 last month to 91.7.
"Consumer confidence improved in November after a moderate decline in October, and is once again at pre-recession levels," said Lynn Franco, director of economic indicators at The Conference Board. The Index stood at 111.9 in July 2007.
There are a number of factors behind the revised outlook. "A more favorable assessment of current conditions coupled with a more optimistic short-term outlook helped boost confidence. And while the majority of consumers were surveyed before the presidential election, it appears from the small sample of post-election responses that consumers' optimism was not impacted by the outcome. With the holiday season upon us, a more confident consumer should be welcome news for retailers," said Franco.
The monthly survey is based on a probability-design random sample, and is conducted for The Conference Board by Nielsen. The cutoff date for the preliminary results was November 15.
Consumers' assessment of current conditions improved in November. The percentage saying business conditions are "good" improved from 26.5% to 29.2%, while those saying business conditions are "bad" fell from 17.3% to 14.8%.