US consumer confidence deteriorates in January
By Michele Maatouk
Date: Tuesday 25 Jan 2022
(Sharecast News) - US consumer confidence deteriorated in January as short-term expectations weakened, according to a survey released on Tuesday.
The Conference Board's consumer confidence index declined to 113.8 from 115.2 in December, but was above expectations for a reading of 111.8.
At the same time, the present situation index, which is based on consumers' assessment of current business and labour market conditions, rose to 148.2 from 144.8. The expectations index, based on the short-term outlook for income, business and labour market conditions, fell to 90.8 in January from 95.4 in December.
Lynn Franco, senior director of Economic Indicators at the Conference Board, said: "Consumer confidence moderated in January, following gains in the final three months of 2021. The present situation index improved, suggesting the economy entered the new year on solid footing. 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. Looking ahead, both confidence and consumer spending may continue to be challenged by rising prices and the ongoing pandemic."
Oxford Economics said: "Consumer confidence will remain highly sensitive to health conditions, inflation, and labour market headwinds in the near term, but stronger economic activity following Q1's chill should underpin stronger readings in Q2."
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