The Conference Board Reports Consumer Confidence Index® Improved in January

The Conference Board is reporting that their Consumer Confidence Index® improved moderately in January 2021 after declining in December 2020. The index now stands at 89.3, up from December’s reading of 87.1. The Expectations Index – based on consumers’ short-term outlook for income, business, and labor market conditions – increased from 87.0 in December to 92.5 this month. However, the Present Situation Index, which is based on consumers’ assessments of current business and labor market conditions decline from 87.2 in December to 84.4 in January. In remarks prepared for the release of the report, Lynn Franco, , Senior Director of Economic Indicators at The Conference Board, said, “Consumers’ appraisal of present-day conditions weakened further in January, with COVID-19 still the major suppressor. Consumers’ expectations for the economy and jobs, however, advanced further, suggesting that consumers foresee conditions improving in the not-too-distant future. In addition, the percent of consumers who said they intend to purchase a home in the next six months improved, suggesting that the pace of home sales should remain robust in early 2021.”