A report has shown that US consumers' confidence in the country's economy rose to its highest level since July this month.
The Conference Board said its consumer confidence index rose 15 points to 56, up from a revised 40.9 in October. The October number was the lowest level since the recession.
The November figure was the highest level since July, when it was 59.2. The 15-point increase was the biggest jump since May 2009.
A reading of 90 indicates the economy is on solid footing. Economists watch the number closely because consumer spending accounts for about 70% of economic activity.
Fitch lowers US credit outlook
Ratings agency Fitch reaffirmed the US' top credit rating last night, but downgraded the outlook to negative as it projected slow growth, political stalemate and rising levels of debt this decade.
Citing "still strong economic and credit fundamentals," Fitch said that the recent failure of Congress to reach a short-term deficit cutting deal could delay more fundamental reforms.
It added that there was "considerable uncertainty surrounding the economy's potential output." Taken together, political failures and slower growth could result in a full-fledged downgrade.
"The negative outlook indicates a slightly greater than 50% chance of a downgrade over a two-year horizon," it said.
A spokeswoman for the US Treasury, Colleen Murray, said the move was a "reminder of the need for Congress to reduce the country's long-term deficit in a balanced manner and to avoid efforts that would undo the $1.2 trillion in automatic cuts negotiated last summer."
Fitch said a key trigger would be the government's failure to reach agreement in 2013 on a "credible deficit reduction plan" as the economy slows. That, Fitch said "would likely result in a downgrade of the US sovereign rating."
"The longer productive capacity remains idle and unemployment high, the greater the likelihood that the loss of output (and tax receipts) is greater than currently estimated." Fitch said that had "negative implications for the medium to long-term fiscal outlook."
