Consumer confidence rises amid omicron spread, higher prices

U.S. consumer confidence rose to its highest level since July this month despite worrying news about inflation, the omicron variant and an expected winter surge of the novel coronavirus, according to a monthly survey from business research organization The Conference Board.

The consumer confidence index rose to 115.8 in December, up from 111.9 in November, according to the survey.

The survey also found a slight increase in consumers’ optimism about the business conditions outlook for six months in the future, with 26.7 percent of survey respondents saying they expected business conditions to improve, up from 25.6 percent in November. Meanwhile, the proportion of respondents saying they expected business conditions to worsen was 17.9 percent, down from 19.6 percent a month earlier.

Lynn Franco, the senior director of economic indicators at The Conference Board, said those improved expectations for short-term growth were “setting the stage for continued growth in early 2022.”

“The proportion of consumers planning to purchase homes, automobiles, major appliances, and vacations over the next six months all increased,” she added in a statement.

Concerns about inflation and COVID-19 among respondents also declined compared with November, despite ongoing increases in prices and the first detection of the omicron variant in late November, before the survey was conducted.

The survey results come after data released by the Labor Department earlier in the month showed annual inflation climbing to its highest level in 30 years as consumer prices rose 6.8 percent in the year leading into November.