American Consumer Confidence Soars to Five-Month High, Boosting Home Sales and Stock Optimism

US consumer confidence rose to a five-month high in December, driven by optimism about business conditions and the labor market. Americans are planning to make major purchases, such as vehicles and appliances, and go on vacations. The increase in confidence is attributed to rising stock markets, lower mortgage rates, and lower gasoline prices. The Federal Reserve's decision to hold interest rates steady and signal lower borrowing costs in 2024 also contributed to the positive outlook. Meanwhile, existing home sales in November saw a modest gain of 0.8%, but a shortage of available homes continues to push prices higher.