Consumer Confidence Surges in January

The Conference Board Consumer Confidence Index increased 2.3 points to 125.4 in January. Last month’s index was upwardly revised from 122.1 to 123.1. The Present Situation Index decreased 1.3 points to 155.3 after rising 1.7 points last month. The Expectations Index surged 4.7 points to 105.5.

“Consumer confidence improved in January after declining in December,” said Lynn Franco, Director of Economic Indicators at The Conference Board. “Consumers’ assessment of current conditions decreased slightly, but remains at historically strong levels. Expectations improved, though consumers were somewhat ambivalent about their income prospects over the coming months, perhaps the result of some uncertainty regarding the impact of the tax plan. Overall, however, consumers remain quite confident that the solid pace of growth seen in late 2017 will continue into 2018.”

Consumers’ labor market outlook also improved in January. The percentage of consumers expecting more jobs in the coming months was virtually unchanged at 19.0%, while the share of those anticipating fewer jobs fell from 15.9% to 11.8%. Income expectations fell slightly, as 20.4% of consumers expected their incomes to increase in coming months, down from 22.7% in December. However, the proportion expecting a decline fell, from 9.0% to 7.7%.

Read the Conference Board release.

About Stephen Newton

Stephen Newton is an economic research associate at ABA.
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