After reporting U.S. consumer confidence at a fifteen-year high in the previous month, the Conference Board released a report on Tuesday showing a drop in consumer confidence in the month of January.
The Conference Board said its consumer confidence index fell to 111.8 in January from a revised 113.3 in December. Economists had expected the index to dip to 112.2.
“The decline in confidence was driven solely by a less optimistic outlook for business conditions, jobs, and especially consumers’ income prospects,” said Lynn Franco, Director of Economic Indicators at The Conference Board.
“Consumers’ assessment of current conditions, on the other hand, improved in January,” she added. “Despite the retreat in confidence, consumers remain confident that the economy will continue to expand in the coming months.”
The drop by the consumer confidence index came as the expectations index tumbled to 99.8 in January from 106.4 in December.
The percentage of consumers expecting business conditions to improve over the next six months decreased to 23.1 percent from 24.7 percent, while those expecting business conditions to worsen increased to 10.7 percent from 8.9 percent.
Meanwhile, the Conference Board said the present situation index climbed to 129.7 in January from 123.5 in the previous month.
Consumers saying business conditions are “good” increased inched up to 29.3 percent from 28.6 percent, while those saying business conditions are “bad” decreased from 17.8 percent to 16.1 percent.
The assessment of the labor market was also more positive, as the percentage of consumers saying jobs are “plentiful” rose to 27.4 percent from 26.0 percent and those claiming jobs are “hard to get” fell to 21.5 percent from 22.7 percent.
The material has been provided by InstaForex Company – www.instaforex.com
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