As we come to the end of a tumultuous year, consumer confidence levels are popping and our economy is dodging economic forecasts that seemed downright bleak just a few months ago.
At the beginning of the year, we were surrounded by announcements of the presumed end of the business cycle and wholesale downturns in confidence. Experts predicted that 2020 would be the year of a major recession, causing economists to be particularly concerned with consumer perspectives on the state of the nation.
However, recent data indicates that consumer confidence is on the rise going into the end of the year, meaning that economic conditions remain relatively stable despite the predictions of doom and gloom that were made.
The Conference Board’s Consumer Confidence survey is one key indicator of how economically sound people believe the country to be. Leading up to the end of the year, the survey’s findings surged and now stand at 90.9, which is the highest level seen in two years.
Furthermore, the survey found that the proportion of respondents who expected business conditions to remain unchanged over the next six months rose to 60.8 percent, the highest level since December 2018. Similarly, those who expected their incomes to increase rose to 18.2 percent, compared with 17.3 percent the prior month. This increase in optimism is a sign that that the American economy is not only surviving but thriving.
For example, the Dow Jones Industrial Average recently reached a record high and is up nearly 7 percent since the start of the year. Similarly, the Labor Department announced that the job market has added more than 2.5 million jobs since the start of the year, defying expectations of major job losses due to the pandemic.
While COVID-19 has certainly taken its toll on many aspects of the economy, consumer confidence has proved resilient and is now showing signs of growth. This indicates that the American economy is still in a stable position as we enter 2021 and could be poised for a successful 2021.
The data could come as a turning point for the economy as we move into the new year. It is proof that, although disruption is a certainty, the American people have the resilience and confidence to weather any storm and keep the economy afloat.
