We monitor and report on consumer confidence because it has a strong correlation with steel consumption. Consumer spending represents approximately 70% of GDP. When consumer confidence is strong, it leads to increased steel consumption. The December 2016 composite score reached its highest reading since August 2007 at 113.7, Figure 1.


Figure 1

On a 3MMA, the value was 107.2, its 7th monthly advance. The present situation sub-index score was 126.4 (3MMA), while the Expectation sub-index score was 94.4. The expectations has soared 26% y/y as consumers feel good about the job and wage growth situation and are seeing their wealth improve.