The Conference Board (CB) released data on the American Consumer Confidence Index for the current month of December on Monday, which came in negative and lower than market expectations, as the index recorded its lowest level since October.
According to the reported data, the American Consumer Confidence Index registered 104.7 points this month, which was lower than the expected reading of around 112.9 points. The previous reading for the American Consumer Confidence Index was 111.7 points during the previous month of November.
It is worth noting that the American Consumer Confidence Index has a strong impact on financial markets, whether in the stock market or bond market, as consumer spending represents two-thirds of economic activity.
Therefore, if consumers are not confident in economic activity, they will not purchase goods. As a result, confidence affects consumer spending, which naturally impacts economic growth. For stock markets, strong economic growth reflects in improved corporate profits and rising stock prices.
