U.S. Consumer Sentiment Gains a Second Month as Job-Market Pessimism Wanes

[Purveyor]

By Courtney Schlisserman

Dec. 29 (Bloomberg) -- Confidence among U.S. consumers rose in December for a second month as pessimism over the outlook for jobs diminished.

The Conference Board’s confidence index increased to 52.9, in line with the median forecast of economists surveyed by Bloomberg News, from 50.6 in November, the New York-based research group said today. Another report showed home prices climbed in October for a fifth consecutive month.

The report showed consumer attitudes about current conditions decreased to the lowest level in 26 years and expectations over wages also fell, a reminder that spending may be slow to recover with government assistance. A jobless rate that is forecast to exceed 10 percent through the first half of next year may prompt policy makers and retailers to maintain tax breaks and incentives to entice buyers.

“Americans are reading that a recovery is underway but, looking at the unemployment rate, not many of them are feeling it where it really counts just yet,” said Avery Shenfeld, chief economist at CIBC World Markets in Toronto.

Stocks trimmed earlier gains following the report. The Standard & Poor’s 500 Index was up 0.1 percent to 1,129.17 at 10:14 a.m. in New York.

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