The Conference Board Consumer Confidence Index(R) increased in January, now standing at 125.4 (1985=100), up from 123.1 in December. The Present Situation Index decreased slightly, from 156.5 to 155.3, while the Expectations Index increased from 100.8 last month to 105.5 this month.
“Consumer confidence improved in January after declining in December,” said Lynn Franco, Director of Economic Indicators at The Conference Board. “Consumers’ assessment of current conditions decreased slightly, but remains at historically strong levels. Expectations improved, though consumers were somewhat ambivalent about their income prospects over the coming months, perhaps the result of some uncertainty regarding the impact of the tax plan. Overall, however, consumers remain quite confident that the solid pace of growth seen in late 2017 will continue into 2018.”
Consumers’ assessment of current conditions was slightly less positive in December. Consumers’ assessment of business conditions was mixed. The percentage saying business conditions are “good” decreased slightly from 35.8% to 34.9%, while those saying business conditions are “bad” increased slightly, from 11.7% to 12.7%. Consumers’ assessment of the labor market was also mixed. The percentage of consumers claiming jobs are “plentiful” increased from 36.3% to 37.6%, while those claiming jobs are “hard to get” increased marginally, from 16.0% to 16.4%.
Consumers’ optimism about the short-term outlook improved in January, following a sharp decline in December. The percentage of consumers anticipating business conditions to improve over the next six months increased marginally, from 21.6% to 22.0%, while those expecting business conditions to worsen increased from 9.0% to 9.8%.
Consumers’ outlook for the job market was also less negative. The proportion expecting more jobs in the months ahead was virtually unchanged at 19.0%, while those anticipating fewer jobs declined from 15.9% to 11.8%. Regarding their short-term income prospects, the%age of consumers expecting an improvement decreased from 22.7% to 20.4%, while the proportion expecting a decrease also declined, from 9.0% to 7.7%.
