The Conference Board said Consumer Confidence fell in January, falling to 107.1 (below consensus 109.0) from an upwardly revised 109 in December. The Expectations Index retreated in January reflecting their concerns about the economy over the next six months. Consumers expect business conditions to worsen in the near term. Purchasing plans for autos and appliances held steady, but fewer consumers are planning to buy a home—new or existing. For perspective in the same period a year ago, the Consumer Confidence Index stood at 115.2.
The Conference Board
US Consumer Confidence January 2023
US CB Consumer Confidence Jan: 107.1 (est 109.0; prev R 109.0)
- Present Situation: 150.9 (prev R 147.4)
- Expectations: 77.8 (prev R 83.4)
“Consumer confidence declined in January, but it remains above the level seen last July, lowest in 2022,” said Ataman Ozyildirim, Senior Director, Economics at The Conference Board. “Consumer confidence fell the most for households earning less than $15,000 and for households aged under 35.”
- The Conference Board’s Consumer Confidence Index decreased in January following an upwardly revised increase in December 2022. The Index now stands at 107.1 (1985=100), down from 109.0 in December (an upward revision).
- The Present Situation Index (based on consumers’ assessment of current business and labor market conditions) increased to 150.9 (1985=100) from 147.4 last month.
- The Expectations Index (based on consumers’ short-term outlook for income, business, and labor market conditions) fell to 77.8 (1985=100) from 83.4 partially reversing its December gain.
- However, Expectations is below 80 which often signals a recession within the next year.
- Present Situation and Expectations Indexes were revised up slightly in December.
“Consumers’ assessment of present economic and labor market conditions improved at the start of 2023. However, the Expectations Index retreated in January reflecting their concerns about the economy over the next six months. Consumers were less upbeat about the short-term outlook for jobs. They also expect business conditions to worsen in the near term. Despite that, consumers expect their incomes to remain relatively stable in the months ahead. Meanwhile, purchasing plans for autos and appliances held steady, but fewer consumers are planning to buy a home—new or existing. Consumers’ expectations for inflation ticked up slightly from 6.6 percent to 6.8 percent over the next 12 months, but inflation expectations are still down from its peak of 7.9 percent last seen in June.”
The Conference Board publishes the Consumer Confidence Index® at 10 a.m. ET on the last Tuesday of every month. Subscription information and the technical notes to this series are available on The Conference Board website: https://www.conference-board.org/data/consumerdata.cfm.
About The Conference Board
The Conference Board is the member-driven think tank that delivers trusted insights for what’s ahead. Founded in 1916, a non-partisan, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States. www.conference-board.org.
Source: The Conference Board
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