Consumer Confidence Declines in January, Ending Three Consecutive Months of Gains

The Conference Board, a non-partisan, not-for-profit think tank founded in 1916, released today (1-25-22) their Consumer Confidence Index® (CCI) for January 2022. The CCI declined in January after an increase in December. The Index now stands at 113.8 (1985=100), down from 115.2 in December. The Present Situation Index — based on consumers’ assessment of current business and labor market conditions — improved to 148.2 from 144.8 in December. The Expectations Index — based on consumers’ short-term outlook for income, business, and labor market conditions — declined to 90.8 from 95.4.

In a statement prepared for the release of this month’s CCI, Lynn Franco, Senior Director of Economic Indicators at The Conference Board said, “Consumer confidence moderated in January, following gains in the final three months of 2021. The Present Situation Index improved, suggesting the economy entered the new year on solid footing. However, expectations about short-term growth prospects weakened, pointing to a likely moderation in growth during the first quarter of 2022. Nevertheless, the proportion of consumers planning to purchase homes, automobiles, and major appliances over the next six months all increased.”

“Meanwhile, concerns about inflation declined for the second straight month, but remain elevated after hitting a 13-year high in November 2021,” Franco added. “Concerns about the pandemic increased slightly, amid the ongoing Omicron surge. Looking ahead, both confidence and consumer spending may continue to be challenged by rising prices and the ongoing pandemic.”