Live

Watch CBSN Live

Consumer Confidence Rebounds

Consumer confidence rebounded in November after four months of losses, boosted by a surging U.S. stock market and fewer concerns about President Clinton's future.

The Conference Board reported Tuesday its index of consumer confidence rose 6.7 points to 126 from a revised 119.3 in October, when it was at its lowest point in nearly two years.

Consumer sentiment is an important economic indicator since consumer spending accounts for two-thirds of the nation's overall economic activity.

"Favorable economic conditions and confidence about the health of the economy over the next six months have lifted consumer spirits," said Lynn Franco, associate director at the Conference Board, a New York-based, business-financed private research group.

According to the survey, consumers in November remain very confident about current economic conditions and are less concerned about what to expect in the future.

The index that measures feelings about present conditions rose 0.5 points to 165.7, while the index that measures expectations for the next six months rose 10.8 points to 99.5.
More Americans said they would buy a home or major appliance. More consumers expect business conditions to get better, meaning more jobs and higher paychecks.

The index, started in 1967, is compiled from responses to questions sent to 5,000 households nationwide. The survey polls consumers on matters ranging from job prospects to buying plans. The index compares results to its base year, 1985, when it stood at 100.

View CBS News In
CBS News App Open
Chrome Safari Continue