United States: Consumer confidence improves again in January
January 26, 2016
The Conference Board consumer confidence index increased to 98.1 points in January from a revised 96.3 points in December (previously reported: 96.5 points). January’s result beat market expectations of 96.0 points. The confidence index followed a volatile path during 2015. However, January’s increase marks a second straight gain in consumer confidence and there is optimism that consumer spending, the motor of the economy, will strengthen throughout this year.
January’s increase in confidence was driven by gains in consumers’ expectations on conditions in the next six months. Consumers’ expectations regarding business conditions and employment prospects in the coming months were stronger in December. Sentiment regarding current economic conditions was roughly unchanged.
The director of the Board emphasized that, “consumer confidence improved slightly in January, following an increase in December. Consumers’ assessment of current conditions held steady, while their expectations for the next six months improved moderately. For now, consumers do not foresee the volatility in financial markets as having a negative impact on the economy”
Author: Carl Kelly, Economist