Why did this happen? The most straightforward explanation for both measures rising is that consumers have more fully digested the news about the efficacy of vaccines than they had in November. Thus, they are feeling better about both their short-term and long-term prospects.
Big picture: Even with both current and future expectations rising, the researchers said, “most of the early December gain was due to a more favorable long-term outlook for the economy, while year-ahead prospects for the economy, as well as personal finances, remained unchanged.”
What’s next: It is good news consumers are feeling better about the economy, no matter the reason. When consumers feel better, they spend more, which will drive growth.
—Curtis Dubay, Senior Economist, U.S. Chamber of Commerce