Consumer Confidence slips in January
The Conference Board Consumer Confidence Index declined in January, after an increase in December. The Index now stands at 113.8 (1985=100), down from 115.2 in December.
The latest index, released on Tuesday, is ahead of 87.1 a year ago, and down from 130.7 in 2020.
“Consumer confidence moderated in January, following gains in the final three months of 2021,” said Lynn Franco, senior director of economic indicators at The Conference Board.
The Present Situation Index—based on consumers’ assessment of current business and labor market conditions—improved to 148.2 from 144.8 last month.
“The Present Situation Index improved, suggesting the economy entered the new year on solid footing," Franco said. "However, expectations about short-term growth prospects weakened, pointing to a likely moderation in growth during the first quarter of 2022. Nevertheless, the proportion of consumers planning to purchase homes, automobiles, and major appliances over the next six months all increased.
"Meanwhile, concerns about inflation declined for the second straight month, but remain elevated after hitting a 13-year high in November 2021. Concerns about the pandemic increased slightly, amid the ongoing Omicron surge," Franco added. "Looking ahead, both confidence and consumer spending may continue to be challenged by rising prices and the ongoing pandemic.”
Also, consumers were found to be slightly less positive about their short-term financial prospects.
- 16.7% of consumers expect their incomes to increase, down from 17.5%.
- 12.4% expect their incomes will decrease, up from 11.2%.
