Index Hits Two-Year High on Surging Views of Current Conditions, Declining Pessimism About Future – The Conference Board Consumer Confidence Index rose in January to 114.8 (1985=100), up from a revised 108.0 in December. The reading was the highest since December 2021, and marked the third straight monthly increase. The Present Situation Index based on consumers’ assessment of current business and labor market conditions surged to 161.3 (1985=100) from 147.2 last month. The Expectations Index based on consumers’ short-term outlook for income, business, and labor market conditions improved to 83.8 (1985=100) in January, up from a revised reading of 81.9 in December. “January’s increase in consumer confidence likely reflected slower inflation, anticipation of lower interest rates ahead, and generally favorable employment conditions as companies continue to hoard labor,” said Dana Peterson, Chief Economist at The Conference Board. “The gain was seen across all age groups, but largest for consumers 55 and over. Likewise, confidence improved for all incomes groups except the very top; only households earning $125,000+ saw a slight dip. January’s write-in responses revealed that consumers remain concerned about rising prices although inflation expectations fell to a three-year low. Buying plans dipped in January, but consumers continued to rate their income and personal finances favorably currently and over the next six months. Consumers’ Perceived Likelihood of a US Recession over the Next 12 Months continued to gradually ease in January, consistent with an Expectations Index rising above 80.”
Conference Board – Consumer Confidence Index (01-30-24)
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