US consumer confidence dropped this month as persistent inflation, and the Omicron variant dampened the optimism of consumers.
Source: The Conference Board
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The Conference Board stated its consumer confidence index, which evaluates current conditions and future outlook dropped to 113.8 in January from 115.2 in December.
The present situation index, which assesses consumers’ assessment of current business and labor conditions, expanded this month to 148.2 from 144.8 in December.
The expectations index, which evaluates consumers’ six-month forecast for income, business, and labor market conditions, dropped in January to 90.8 from 95.4 last month.
Lynn Franco, Senior Director of Economic Indicators at The Conference Board, stated that consumer confidence moderated in January after gains in the last quarter of 2021.
Franco further stated that the present situation index improved, signaling the economy starts the new year on a solid foundation.
Consumers were less positive about their short-term financial outlook, with only 16.7% expecting their incomes to grow.