Economy: Consumer Confidence Up, Home Prices Flat

A monthly survey by the Conference Board, a private research group, found that consumer confidence picked up slightly in December after rising in November, but still remains at a weak level. The results largely capture consumer attitudes about the labor market.

Meanwhile, the Standard & Poor’s/Case-Shiller home-price index, which tracks sales in 20 major metropolitan areas, showed that prices of single-family homes were largely flat in October compared with September.

The housing market’s decline in recent years has helped undermine consumer confidence and cripple the economy. Reinvigorating the housing sector and boosting confidence are considered key components to revitalizing the economy, economists say.

Earlier this year, the biggest concern among many economists was that home prices would decline unabated. By late spring and into the summer, prices rebounded unexpectedly before tapering off in September and then flattening out in October on a non-seasonally-adjusted basis, according to the Case-Shiller price index.

The consumer confidence survey number does not integrate attitudes about the housing market. But it does ask consumers if they plan to buy a home within the next six months, and the response remains at a relatively low level.

The index reveals a split in how consumers view current economic conditions and future expectations. Consumers rate current conditions as the worst since February 1983. By contrast, future expectations have risen for the past two months to their highest level since December 2007.

We’d like to know how your confidence level is in our economy. Just click the comment link below and add your comments to this story about consumer confidence. Your email address will NOT be published with your comments.