Consumer economic sentiment rose ahead of the New Year after Congress passed a new stimulus package, a recent poll found.
The poll from CivicScience, which was published Tuesday, used the Hamilton Place Strategies-CivicScience Economic Sentiment Index (ESI) to measure U.S. adults’ confidence in the economy going forward and their feelings about current economic conditions. The ESI is updated in real-time as responses are collected every hour each day.
ICYMI: Economic Sentiment Continues To Improve Ahead Of The New Year https://t.co/NEggdyewle
— Economic Sentiment (@HPS_CS) December 22, 2020
The most recent reading of the ESI showed that for a second straight reading, respondents showed increased confidence in the economy. From Dec. 9 to Dec. 22, the ESI increased by 1.2 points up to 46.9. Out of the 5 indicators that go into measuring the ESI, 4 of them improved since Dec. 8. Confidence in the broader economy rose from 46.9 to 50.3 between Dec. 8 and Dec. 22, and was the biggest improvement out of the 5 indicators since September. (RELATED: ‘We’re On The Cusp Of An Economic Catastrophe’: Experts Sound The Alarm At Potential For More Lockdowns)
Consumer confidence in their personal finances increased by 2.8 points between Dec. 8 and Dec. 22, and confidence in the labor market increased by 2.4 points during that same time period, the poll found. Confidence in the housing market increased by 1.7 points, up to 49.3. Confidence in making a major purchase was the only indicator that dropped, going from 44.9 to 40.8 between Dec. 8 and Dec. 22.
Economic sentiments rose after Congress passed a $900 billion coronavirus stimulus package and a $1.4 trillion government funding bill Monday night. The relief package includes $600 direct payments to Americans making less than $75,000 per year, $300 unemployment checks for 14 weeks, and around $280 billion in relief funds for small businesses, which have been hit hard by the shutdowns put in place during the pandemic.