US Consumer Confidence Rebounds, House Prices Maintain Upward Trend

• U.S. consumer confidence rebounded in November, breaking a three-month decline, driven by plans for significant purchases like vehicles and houses despite concerns about higher prices and interest rates.
• While the improvement in confidence was notable, around two-thirds of surveyed consumers still perceive a recession as likely within the next year, contrasting with economists' predictions of slow growth instead.
• The Conference Board's consumer confidence index rose to 102.0 in November, surpassing expectations. Optimism was more pronounced among households aged 55 and older, with the present situation index slightly decreasing and the expectations index rising.
• Consumers express worries about rising prices, but their 12-month inflation expectations fell to 5.7%. The share of consumers anticipating higher interest rates was the smallest since April 2021, aligning with market expectations of a potential Fed rate cut in mid-2024.
• Financial markets responded positively, with stocks rising, the dollar falling, and U.S. Treasury prices increasing. Consumers showed increased intentions to make significant purchases, and online spending during Cyber Week exceeded expectations.
• The labour market remains resilient, supporting consumer spending, but concerns about job availability are emerging. Additionally, the survey indicates more consumers plan to buy a house, though affordability challenges may arise due to high mortgage rates and a shortage of available properties.

(Source: Reuters)