Consumer confidence rose to a four-and-a-half-year high in November as consumers became more optimistic about the outlook for the economy, according to a private sector report released on Tuesday.
The Conference Board, an industry group, said its index of consumer attitudes rose to 73.7 up from an upwardly revised 73.1 the month before, its highest since February 2008. Economists had expected a reading of 73.0, according to a Reuters poll.
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October was originally reported as 72.2.
KATHY LIEN, MANAGING DIRECTOR, BK ASSET MANAGEMENT, NEW YORK
"The number was a bit of a surprise considering other indicators, such as the University of Michigan report, showed us a deterioration in sentiment. And stocks performed quite poorly between October and November. Nonetheless, this does bode well for the holiday shopping season. It suggests consumers are not as nervous about the fiscal cliff as some might have believed. This has led to a small gain in the U.S. dollar. It shows there's more hope for the U.S. economy than for other developed ones."
MARKET REACTION: FOREX: The dollar extended gains versus euro and Japanese yen after consumer confidence data
(Americas Economics and Markets Desk; +1-646 223-6300)