Holiday Spending Will Be Backed by the Rising Consumer Confidence This Year
The COVID-19 vaccines are helping to get Americans back out into the physical consumer world. Even with the supply chain problems and rocket high inflation, consumers are still planning on spending the bucks this holiday season.
The Consumer Confidence Index saw a rise in the third quarter of 2021 to 113.8 points. The level seen this October was the highest level seen since July 2021. American’s mindset also rose for future consumer spending. Many see purchasing a house car and major appliances before the year-end.
Close to 50% of those surveyed are planning on taking a vacation in the next six months. This is the highest level we have seen before the pandemic.
“While short-term inflation concerns rose to a 13-year high, the impact on confidence was muted,” said Lynn Franco, The Conference Board’s senior director of economic indicators.
In a nutshell, Americans are not fazed by price inflation. Luckily this is pushing the labor market to recover. It will be a while before consumers get fed up with the price inflations.
“And most of that is due to the job market,” said Jennifer Lee, senior economist at BMO. “And though the share of those respondents finding that jobs are plentiful slipped a bit this month, the share of those who find that jobs are hard to get fell even more.”
