Consumer confidence rising

The most widely cited consumer confidence index rose in November to 56, up from 40.9 in October, which marked the highest reading since July. The rise in confidence came after six months of steady decline. Consumers’ short-term outlook, which also had been declining in prior months, was less negative in November. The proportion of consumers anticipating business conditions to improve over the next six months increased to 13.6 percent from 10.2 percent, while those anticipating business conditions will worsen declined to 15.8 percent from 21.3 percent. Consumers’ outlook for the job market also improved toward the end of the year. Those expecting more jobs in the months ahead rose to 12.9 percent from 10.8 percent in October, while those expecting fewer jobs decreased to 24.1 percent from 27.6 percent.

Volatile year for stocks

This has been a volatile year for the stock market, with the three major indexes on a constant roller coaster ride. Political gridlock, the European debt crisis and a sluggish economy have led to uncertainty, and many analysts believe the 2012 outlook for stocks will be grim. In July, worries about Greek debt caused the market to close on a losing streak, with the Dow Jones industrial average losing 4.5 percent in the last six days of trading. The volatility continued throughout the summer and fall as more European countries fell victim to the sovereign debt crisis. In August, when Standard and Poor’s downgraded the United States’ credit rating from AAA to AA-plus, U.S. stocks tumbled, giving the Standard & Poor’s 500 index its worst slump since November 2008, Bloomberg reported. Stocks did close November on a high note as Europe’s central banks took a more active role with the debt crisis by making additional funds available to lenders. However, they remained mixed throughout December with improvements after upbeat jobs and manufacturing reports and declines when Fitch Ratings Ltd. downgraded seven banks, including Bank of America Corp., Morgan Stanley and Goldman Sachs Group Inc.

Iowa unemployment rate stays below national average at 6 percent

Iowa’s unemployment rate has hovered around 6 percent for most of the year, dropping to 5.7 percent in November. An Iowa Workforce Development report released in late December said the drop marked the first time since Sept. 2009 that the rate was below 6 percent. For the year, manufacturing has contributed the most new jobs, 7,900 from last November. Additionally, in November the country’s 9 percent unemployment rate dropped to 8.6 percent, the lowest since March 2009, according to the U.S. Bureau of Labor Statistics. The United States added 100,000 or more jobs every month from July through November, and jobless claims fell to a three-year low of 366,000 in mid-December.