US Consumer Confidence Index Rises for Third Consecutive Month in January

The Conference Board, a non-partisan, not-for-profit think tank founded in 1916, released on Tuesday its Consumer Confidence Survey® for January.

• The Consumer Confidence Index® (CCI) rose to a reading of 114.8 (1985=100) in January, up from a revised December reading of 108.0. The Conference Board notes that the January CCI was the highest since December 2021 and marked the third straight monthly increase.
• The Present Situation Index—based on consumers’ assessment of current business and labor market conditions—climbed to a reading of 161.3 (1985=100) in January, up from 147.2 in December.
• The Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions—increased to a reading of 83.8 in (1985=100) in January, up from 81.9 in December.

In remarks accompanying the results of the January survey, Dana Peterson, Chief Economist at The Conference Board, said:

“January’s increase in consumer confidence likely reflected slower inflation, anticipation of lower interest rates ahead, and generally favorable employment conditions as companies continue to hoard labor. The gain was seen across all age groups, but largest for consumers 55 and over. Likewise, confidence improved for all incomes groups except the very top; only households earning $125,000+ saw a slight dip. January’s write-in responses revealed that consumers remain concerned about rising prices although inflation expectations fell to a three-year low. Buying plans dipped in January, but consumers continued to rate their income and personal finances favorably currently and over the next six months. Consumers’ Perceived Likelihood of a US Recession over the Next 12 Months continued to gradually ease in January, consistent with an Expectations Index rising above 80.”