December 22, 2022 at 22:30 PM
Nobel Laureate and Renowned Economist Paul Krugman
[Global Market Report]Nobel Prize winner and famous economist Paul Krugman expressed doubts about the optimistic US consumer confidence data released on Wednesday.
Data released on Wednesday showed that the Conference Board consumer confidence index in the United States rebounded sharply to 108.3 in December, far exceeding expectations. Among them, the expectations index based on consumers’ short-term outlook on income, business and labor market conditions rose to 82.4 from 76.7.
Krugman sarcastically pointed out that while it is well known that the economy is in trouble, judging from the survey results, the public seems to be blind to it.
“According to the Conference Board survey, as 2022 wraps up, everyone knows the economy is bad – except the public,” the economist tweeted.
Lynn Franco, senior director of economic indicators at the Conference Board, said both the current conditions and expectations index improved as consumers became more optimistic about the economy and employment.
Franco said: “Inflation expectations fell back to the lowest level since September 2021 in December, driven mainly by the recent drop in oil prices. Vacation intentions improved, but plans to buy homes and big-ticket appliances cooled further. Consumer preference fell from This shift from high-ticket goods to services will continue in 2023, as will headwinds from inflation and rate hikes.”