US Consumer Confidence Declined in January

US Consumer Confidence Declined in January

Improved View of Present Situation Offset by Worsening Expectations

NEW YORK, Jan. 31, 2023 /PRNewswire/ — The Conference Board Consumer Confidence Index® decreased in January following an upwardly revised enhance 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—primarily based on customers’ evaluation of present enterprise and labor market circumstances—elevated to 150.9 (1985=100) from 147.4 final month. The Expectations Index—primarily based on customers’ short-term outlook for earnings, enterprise, and labor market circumstances—fell to 77.8 (1985=100) from 83.4 partially reversing its December achieve. The Expectations Index is beneath 80 which frequently alerts a recession throughout the subsequent yr. Both current state of affairs and expectations indexes had been revised up barely in December.

“Consumer confidence declined in January, however it stays above the extent seen final July, lowest in 2022,” mentioned Ataman Ozyildirim, Senior Director, Economics at The Conference Board. “Consumer confidence fell probably the most for households incomes lower than $15,000 and for households aged beneath 35.”

“Consumers’ evaluation of current financial and labor market circumstances improved initially of 2023. However, the Expectations Index retreated in January reflecting their issues in regards to the economic system over the following six months. Consumers had been much less upbeat in regards to the short-term outlook for jobs. They additionally count on enterprise circumstances to worsen in the close to time period. Despite that, customers count on their incomes to stay comparatively steady in the months forward. Meanwhile, buying plans for autos and home equipment held regular, however fewer customers are planning to purchase a house—new or current. Consumers’ expectations for inflation ticked up barely from 6.6 p.c to six.8 p.c over the following 12 months, however inflation expectations are nonetheless down from its peak of seven.9 p.c final seen in June.”

Present Situation
Consumers’ evaluation of present enterprise circumstances improved in January.

  • 20.2% of customers mentioned enterprise circumstances had been “good,” up from 19.2%.
  • 19.2% mentioned enterprise circumstances had been “unhealthy,” down from 19.7%.

Consumers’ appraisal of the labor market was additionally extra favorable.

  • 48.2% of customers mentioned jobs had been “plentiful,” up from 46.4%.
  • 11.3% of customers mentioned jobs had been “arduous to get,” down from 11.9%.

Expectations Six Months Hence
Consumers grew to become extra pessimistic in regards to the short-term enterprise circumstances outlook in January.

  • 18.6% of customers count on enterprise circumstances to enhance, down from 20.9%.
  • 21.6% count on enterprise circumstances to worsen, up from 19.9%.

Consumers had been much less upbeat in regards to the short-term labor market outlook.

  • 17.9% of customers count on extra jobs to be accessible, down from 20.0%.
  • 20.1% anticipate fewer jobs, up from 18.7%.

Consumers’ short-term earnings prospects held regular.

  • 17.2% of customers count on their incomes to extend, in comparison with 17.3% final month.
  • 13.4% count on their incomes will lower, just like 13.3% final month.

The month-to-month Consumer Confidence Survey®, primarily based on a web-based pattern, is carried out for The Conference Board by Toluna, a expertise firm that delivers real-time shopper insights and market analysis by means of its progressive expertise, experience, and panel of over 36 million customers. The cutoff date for the preliminary outcomes was January 24.

Source: January 2023 Consumer Confidence Survey®
The Conference Board

The Conference Board publishes the Consumer Confidence Index® at 10 a.m. ET on the final Tuesday of each month. Subscription info and the technical notes to this collection can be found on The Conference Board web site: https://www.conference-board.org/data/consumerdata.cfm.

About The Conference Board
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SOURCE The Conference Board