Consumer confidence in the U.S. steadied last week as fewer firings helped ease concern about higher gasoline prices.
The Bloomberg Consumer Comfort (COMFCOMF) Index was minus 46.4 in the period ended Jan. 22 after minus 47.4 the prior week. Confidence among independent voters, which may be a swing group in the 2012 election, rose to its best level since April.
A drop in dismissals may be the first step to a further pickup in hiring that will help underpin consumer spending, which accounts for about 70 percent of the economy. Climbing fuel costs, which also helped cut short a rebound in confidence about a year ago, are again threatening to undermine households as 2012 gets under way.
“Consumer confidence looks to have stabilized, albeit at low levels,” said Joseph Brusuelas, a senior economist at Bloomberg LP in New York. “Some of the better data flow in manufacturing and labor market is likely the source of the modest improvement.”
Stocks advanced after a gain in durable goods orders exceeded forecasts and earnings at companies including Caterpillar Inc. and Netflix Inc. exceeded projections. The Standard & Poor’s 500 Index rose 0.3 percent to 1,329.48 at 9:36 a.m. in New York.
Orders (DGNOCHNG) for goods meant to last at least three years climbed 3 percent in December after a revised 4.3 percent gain the prior month that was more than previously estimated, Commerce Department figures in Washington showed. Demand picked up for machinery, metals, aircraft and motor vehicles.
Jobless Claims
A separate report showed claims for jobless benefits rose last week, displaying the typical volatility around holidays. Applications for unemployment insurance payments climbed by 21,000 to 377,000 in the week ended Jan. 21, up from an almost four-year low in the prior period.
All three components of the weekly consumer comfort index improved, today’s report showed. The measure of Americans’ views of the current state of the economy rose to minus 81.1 from minus 82.5 in the prior period, and the buying climate index increased to minus 51.3 from minus 52.2. The gauge of personal finances climbed to minus 6.9 from minus 7.5.
The changes masked even more marked shifts among those with pessimistic views. The share of respondents saying the economy was in poor shape, the weakest category, dropped to the lowest level since March. Those saying it was a poor time to buy needed goods and services fell to an almost one year low.
Registered Democrats were among the groups showing the biggest decrease in fostering the most negative views.
