International Business: US consumer bullish despite Covid surge – Gulf Digital News

International Business: US consumer bullish despite Covid surge – Gulf Digital News

WASHINGTON: US consumer confidence improved further in December, suggesting the economy would continue to expand in 2022 despite a resurgence in Covid-19 infections and reduced fiscal stimulus.

The survey from the Conference Board yesterday showed more consumers planned to buy a house and big-ticket items such as motor vehicles and major household appliances as well as go on vacation over the next six months.

Inflation concerns eased a bit and households remained upbeat about the labour market. This will likely help underpin consumer spending even as government income to households is diminishing.

President Joe Biden’s signature $1.75 trillion domestic investment bill known as Build Back Better (BBB), which aims to expand the social safety net and tackle climate change, suffered a blow on Sunday when moderate Democrat Senator Joe Manchin said he would not support it. That prompted economists to slash their growth estimates for next year.

“Consumers are bullish on 2022,” said Robert Frick, corporate economist with Navy Federal Credit Union. “This is further evidence that consumer spending will keep rising and be the main factor fuelling the expansion.”

The Conference Board’s consumer confidence index increased to a reading of 115.8 this month from an upwardly revised 111.9 in November.

Consumers’ assessment of current