Consumer confidence pops in the last month of a year that dodged recession forecasts

The latest survey of consumer sentiment showed a significant jump in the final months of 2019, suggesting that economic forecasts of a potential recession were overblown. Consumers indicated they were more optimistic about the future, with their outlook on the economy improving, primarily due to falling unemployment and an expectation of further income growth. In addition, consumer spending was up on the back end of the year, driven by robust holiday sales, suggesting consumers were more willing to open their wallets during the holiday season. Ultimately, this data suggests that the US economy has remained strong despite widely-held fears of a potential recession, and consumer confidence is a key factor driving that strength.