The Conference
Board announced on Tuesday its U.S. consumer confidence index jumped 6.8 points
to 114.8 in January 2024 from a downwardly revised 108.0 (from 110.7) in December
2023. This represented the highest reading since December 2021 and
marked the third consecutive monthly increase in consumer confidence.
Economists had forecast
the consumer confidence index to advance to 115.0.
The details of
the survey revealed that the January gain in the headline index was primarily due to a surge in the present situation index (+14.1 points to 161.3
this month). In addition, the expectations index also demonstrated a rise (+1.9 points to 83.8).
Commenting on
the results of the last survey, Dana Peterson, Chief Economist at The
Conference Board, said that the January increase in consumer confidence likely
reflected slower inflation, anticipation of lower interest rates ahead, and
generally favourable employment conditions as companies continue to hoard labour.
She noted, however, that January's write-in responses revealed that consumers
remain concerned about rising prices although inflation expectations fell to a
three-year low.