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US consumer confidence hits five-month high
 
 
  
 
 AFP - Wednesday, December  1
 
 
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WASHINGTON (AFP) - – US consumer confidence brightened in November to the highest level in five months, a key index showed Tuesday as the holiday shopping season swings into high gear.
 
The Conference Board said its consumer confidence index rose for the second straight month to 54.1 in November, much better than the 52.0 expected.
 
The research firm downwardly revised the October reading to 49.9 from an initial estimate of 50.2.
 
"Consumer confidence is now at its highest level in five months, a welcome sign as we enter the holiday season," said Lynn Franco, director of the firm's consumer research center.
 
The brighter outlook suggested consumers may be more willing to open their wallets further, despite high unemployment.
 
Retail sales are a big part of consumer spending, which drives two-thirds of US economic activity and is key to boosting a tepid recovery.
 
The Conference Board surveys 5,000 US households each month to gauge the mood of the all-important consumer. The cutoff date for the latest preliminary results was November 19.
 
Consumers' assessment of the current state of the economy and job market improved only slightly, by a half point to 24.0.
 
But expectations for the coming six months led the improved outlook. The expectations index surged 6.7 points to 74.2, the highest level since May.
 
More consumers expected better business conditions and job opportunities and higher income.
 
However, in grim news for the ailing housing market, plans to buy a home fell a half point to 1.7, matching a low last seen in December 2009.
 
Earlier Tuesday, a leading measure of US home prices showed broad-based declines in the third quarter after a rise in prior quarter.
 
The S&P/Case-Shiller national home price index dropped 2.0 percent in July-September, after having risen 4.7 percent in the second quarter. Third-quarter prices were 1.5 percent below their year-ago levels.
 
Scott Hoyt at Moody's Analytics noted that the Conference Board's consumer confidence index remained within its recent range and below the May high of 57.7.
 
While the November increase was positive, "confidence remains weak and is not supporting spending," he said.
 
 
 
 
   
 
 
 
 
 
 
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