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Consumer confidence rose in November to 111.7 from 109.6 in October. The improvement in confidence in November was based largely on labor market optimism, including future job availability. Meanwhile, consumers’ expectations about future business conditions were unchanged, and they were slightly less positive about future income

The Present Situation Index, reflecting current business and labor market conditions, increased 4.8 points to 140.9. The Expectations Index, which reflects consumers’ short-term outlook for income, business and labor market conditions, ticked up 0.4 points to 92.3, well above the recession signal threshold of 80. Consumers’ assessments of current business conditions improved, with slightly less consumers saying business conditions were “good” but less views of the current conditions being “bad.” Consumers also felt more positive about future labor market conditions, with less consumers saying jobs were “hard to get.”

On the other hand, consumers’ assessments of future income fell slightly in November, with 19.0% anticipating income growth, down from 19.5% in October. Although elevated prices remain top of mind, inflation expectations decreased from 5.3% to 4.9% in November, and expectations for higher interest rates continued to decline. Buying plans for homes stalled, while purchasing plans for new cars improved slightly. Purchase plans for most big-ticket appliances were down. Concerns about a recession occurring in the next 12 months fell further in November and was at the lowest proportion since the question was first asked in July 2022.