Consumer confidence rose to its highest level since April amid growing optimism over the U.S. economy and jobs.
The Consumer Confidence Index rose to 108.3 in December having suffered back-to-back declines in the previous two months, according to a Dec. 21 news release from the Conference Board, a nonprofit research organization.
The group's Expectations Index — based on consumers' short-term outlook for income, business, and labor market conditions — improved to 82.4 from 76.7. A reading around 80 is associated with recession.
The stock market reacted to the news with positivity after some gloomy days amid fears over a possible recession. The Dow Jones Industrial Average was up several hundred points, or approximately 1.6 percent, following the release of the figures.
One set of data does not make for a rosy outlook, however. Concerns remain over the future of inflation and interest rates.
"[This] shift in consumers' preference from big-ticket items to services will continue in 2023, as will headwinds from inflation and interest rate hikes," Lynn Franco, senior director of economic indicators at the Conference Board, said in the release.