Are consumers more willing to spend, and on what?

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US Consumers Show Increased Willingness to Spend, Particularly on Homes and Appliances

US consumers began 2019 with heightened confidence, indicating a greater willingness to spend. The Consumer Confidence Index, a key measure of consumer sentiment, saw a significant rise in January, surpassing analyst expectations. This upward trend suggests that Americans felt more optimistic about their financial futures and job prospects, positioning them to continue driving economic growth.
Business and Employment Conditions Improve

Consumers' perception of current economic conditions improved notably in January. The percentage of respondents describing business conditions as "good" increased to 40.8 per cent, up from 39 per cent in December. Concurrently, the proportion of those viewing business conditions as "bad" decreased to 10.4 per cent. This positive shift was mirrored in the labor market, with the number of individuals reporting jobs as "plentiful" climbing to 49 per cent, an increase from 46.5 per cent. Conversely, those finding jobs "hard to get" fell to 11.6 per cent from 13 per cent.
Plans for Major Purchases Increase

The improved economic outlook translated into concrete plans for significant expenditures. A larger share of respondents indicated intentions to purchase a new home and major appliances. This suggests a growing comfort level with making substantial financial commitments, driven by confidence in their financial stability and future earnings.
Automotive Purchase Plans See a Dip

While confidence in other major purchase categories rose, plans for buying new automobiles experienced a slight decline. Auto buying intentions fell to 11.5 per cent in January, marking a three-month low. This decrease may be influenced by factors such as tighter credit conditions, as indicated by rising auto loan delinquency rates.

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Are consumers more willing to spend, and on what?

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