Consumer confidence hits highest level since 2001

Consumer confidence hits highest level since 2001
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Consumer confidence in the U.S. economy has swelled to its highest level since August 2001.

President-elect Donald TrumpDonald John TrumpRepublicans aim to avoid war with White House over impeachment strategy New York Times editorial board calls for Trump's impeachment Trump rips Michigan Rep. Dingell after Fox News appearance: 'Really pathetic!' MORE credited himself for the surge in optimism on Twitter, writing, "Thanks Donald!"

Bloomberg Politics reported Tuesday that the Conference Board’s Consumer Confidence Index hit 113.7 for December.

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The index was up from 109.4 last month after Trump’s White House win, Bloomberg added, and beat projections.

“The post-election surge in optimism for the economy, jobs, and income prospects, as well as for stock prices which reached a 13-year high, was most pronounced among older consumers,” Lynn Franco, the board’s director of economic indicators, said in a statement Tuesday. "Looking ahead to 2017, consumers’ continued optimism will depend on whether or not their expectations are realized.”

The report also found 21 percent of people believe they will see more job availability six months from now, up from 16.1 percent last month.

The share of respondents who expect their incomes to rise in the next six months grew to 21 percent from 17.4 percent in November.

The New York Times on Tuesday said the private economic forecasting group’s report mirrors continuing positive developments in the housing market.

The S&P CoreLogic Case-Shiller composite index, which tracks housing prices, rose 5.1 percent in 20 metropolitan areas in October on a year-over-year basis, according to the Times.

The Times added a spike in borrowing costs after Election Day, however, may halt sustained home value gains.

“Home prices and the economy are both enjoying robust numbers,” said David Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices. "However, mortgage interest rates rose in November and are expected to rise further as home prices continue to outpace gains in wages and personal incomes.” 

“Affordability trends do not suggest an immediate reversal in home price trends. Nevertheless, home prices cannot rise faster than incomes and inflation indefinitely," he said.

Trump frequently vowed he would improve the economy on the campaign trail, promising to protect American jobs and renegotiate global trade deals to benefit the U.S.