Cleaning & Restoration Breaking News

US consumer sentiment up in December

December 10, 2004
/ Print / Reprints /
ShareMore
/ Text Size+
NEW YORK, Dec 10 (Reuters) - U.S. consumer sentiment rose in early December, according to a survey released on Friday, as consumers reacted positively to lower prices at the gas pump.

The University of Michigan's preliminary reading of its consumer confidence index for December was 95.7, up from November's final reading of 92.8, according to market sources who saw the subscription-only report. Analysts on average had forecast that the index would edge up to 93.5.

The survey's index of current conditions gave a preliminary December reading of 106.8, up from a final November reading of 104.7. Its index of consumer expectations gave a preliminary December reading of 88.8, up from November's final reading of 85.2, market sources said.

"People have reacted to the fact that oil prices have come down and that means they expect things to get better going forward," said Jay Bryson, global economist at Wachovia Corp. "The current conditions index shows that people recognize the economy has picked up some steam."

David Berson, chief economist at Fannie Mae, said consumer confidence went down a lot in October and November when oil prices spiked. The bounce in sentiment in early December was probably due to the fact that oil prices were lower, he said.

Financial markets registered little reaction to the report and economists, also, tended to mimimize its significance.

"It's not like Fed policy is going to be dictated by this number," Bryson said.

Richard DeKaser, chief economist at National City Corp., said the December results looked like a relatively upbeat month for consumers, but that the month-to-month changes this year had been slight.

The index rose significantly from November, but even so, remains below the three-month average ended in August, said John Lonsky, chief economist at Moody's Investors Service.

"Consumer sentiment moved in the right direction in December but is still short of the 2004 high," Lonski said. "The December reading was consistent with modest additions to payrolls, but a sub par rate of growth for employment." Consumer confidence is considered a barometer of consumer spending, which accounts for two-thirds of the U.S. economy, although the correlation between confidence and retail sales has not been strong in recent years.

Did you enjoy this article? Click here to subscribe to i Cleaning Specialist Magazine.

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

The 2014 Experience Conference and Exhibition

A look in photos at the 2014 Experience Conference and Exhibition, which was held from April 24-26 at the Embassy Suites Convention Center and Spa in Frisco, Texas.

Podcasts

Have a limited marketing budget but realize the importance of neighborhood marketing? Try doorknob hangers, a low-cost, yet highly effective way to drum up more business. In this episode, John Braun discusses the value of this tactic as well as what you should include on the materials you're hanging.
More Podcasts

ICS Cleaning Specialist Magazine

CoverImage

2014 September

The September issue of ICS features stories on moisture detection, disinfectant services, neighborhood marketing, then we discuss the last level of being phenomenal, and cool products.

Table Of Contents Subscribe

Social Media

Social media is a good way to regularly keep in touch and interact with current clients and reach potential ones. What social mediums do you use in your cleaning/restoration business?
View Results Poll Archive

THE ICS STORE

Get Paid! book cover
Get Paid! (ebook)
Over 30 authors – over 40 articles…from attorneys, contractors, consultants, instructors and others, both inside and outside the restoration industry. R & R, C & R and Cleanfax, opened their archives and gave us the best they had, other chapters were created just for the “Get Paid!” book and its readers. And every one of them has ideas for how to get paid what you are owed.

More Products

ICS DIRECTORY AND BUYING GUIDE

Director_Buyer.jpgThe premier resource and reference guide for the cleaning and restoration industries.

Click here to view

TRUCKMOUNT EQUIPMENT AND ACCESSORIES GUIDE

Truckmount.jpgEquipment listings and specifications from the leading industry manufacturers.

Click here to view

STAY CONNECTED

facebook_40.png twitter_40px.png youtube_40px.pngcrc logo