Economic Release Snapshot: Consumer Confidence Improves in December

Each week, we break down the latest U.S. economic reports, including what the results mean for the overall health of the economy. Here, you will find how economists’ forecasts compare with actual results, key takeaways to consider, as well as a list of what’s on tap for the week ahead. 

Reports for the Week of December 19

National Association of Home Builders Housing Market Index, December (Monday)

• Expected/prior month sentiment: 34/33
• Actual sentiment: 31

Home builder sentiment dropped more than expected in December, marking 12 consecutive months of declining home builder confidence.

Housing starts and building permits, November (Tuesday)

• Expected/prior month housing starts monthly change: –1.8%/–2.1%
• Actual housing starts monthly change: –0.5%
• Expected/prior month building permits monthly change: –2.1%/–3.3%
• Actual building permits monthly change: –11.2%

Both housing starts and building permits declined during the month, which was expected due to the slowdown in new home construction we’ve seen this year.

Existing home sales, November (Wednesday)

• Expected/prior month existing home sales monthly change: –5.2%/–5.9%
• Actual existing home sales monthly change: –7.7%

Existing home sales fell more than expected in November, marking 11 consecutive months of declining home sales due to high prices and mortgage rates.

Conference Board Consumer Confidence, December (Wednesday)

• Expected/prior Consumer Confidence Index: 101.0/101.4
• Actual Consumer Confidence Index: 108.3

Consumer confidence improved more than expected during the month, bringing the index to its highest level since April. Consumer views on both the present situation and future expectations warmed, which led to improvement in the overall index.

Personal spending and personal income, November (Friday)

• Expected/prior personal income monthly change: +0.3%/+0.7%
• Actual personal income change: +0.4%
• Expected/prior personal spending monthly change: +0.2%/+0.9%
• Actual personal spending change: +0.1%

Both personal income and spending increased in November, which was an encouraging signal that consumers remained willing and able to go out and spend.

Upcoming Reports for the Week of December 27

There are no major economic data releases scheduled for the holiday-shortened week. Thanks for reading, and have a Happy New Year!