U.S. Consumer Confidence Index Ends Year Slightly Higher

RAPAPORT... U.S. consumer confidence rose steadily during December, but it remained in negative territory, according to the Gallup Economic Confidence Index. For the week that ended on December 28, Gallup found that consumer confidence measured at negative 17, significantly improved from negative 39 in mid-October during the federal government shutdown. But the December index reading wasn't much improved from negative 21 points at the beginning of the year. The index's best performance in 2013 came in early June, at which time the index was at negative 3 points and the index's  average for the year was negative 16, according to Gallup.

Factors that Gallup determined to have played in improving consumer sentiment included slightly lower unemployment figures, stronger performance on the U.S. stock market and price gains across much of the nation's housing market. Consumers feel more positive about current economic conditions and the economy's future direction than they have in several weeks; however, 56 percent still believe the economy is getting worse and 38 percent say it is getting better.

Even still, Gallup's Economic Confidence Index average for 2013  was the best performance in the survey's six-year history and it was up from an average of negative 21 points in 2012.  Gallup surmised that for the index to finally breach into  positive territory, consumers must see clearer signs of an economic recovery and friendlier and more productive politics in Washington D.C. as opposed to the gridlock and brinkmanship of the past year.