UPDATE: The Conference Board’s consumer confidence survey for the month of January is out.Click here to refresh for updates >
The headline number fell to 58.6, well below expectations of a drop to 64.0.
Last month’s number was revised higher to 66.7 from 65.1, meaning the drop is even steeper than it appears at first blush.
Below, the full release:
The Conference Board Consumer Confidence Index® Declines
29 Jan. 2013
New York, January 29, 2013…The Conference Board Consumer Confidence Index®, which had declined in December, fell further in January. The Index now stands at 58.6 (1985=100), down from 66.7 in December. The Expectations Index declined to 59.5 from 68.1. The Present Situation Index decreased to 57.3 from 64.6 last month.
The monthly Consumer Confidence Survey®, based on a probability-design random sample, is conducted for The Conference Board by Nielsen, a leading global provider of information and analytics around what consumers buy and watch. The cutoff date for the preliminary results was January 17.
Says Lynn Franco, Director of Economic Indicators at The Conference Board: “Consumer Confidence posted another sharp decline in January, erasing all of the gains made through 2012. Consumers are more pessimistic about the economic outlook and, in particular, their financial situation. The increase in the payroll tax has undoubtedly dampened consumers’ spirits and it may take a while for confidence to rebound and consumers to recover from their initial paycheck shock.”
Consumers’ appraisal of current conditions deteriorated in January. Those claiming business conditions are “good” declined to 16.7 per cent from 17.2 per cent, while those stating business conditions are “bad” increased to 27.4 per cent from 26.3 per cent. Consumers’ assessment of the labour market has also grown more negative. Those saying jobs are “plentiful” declined to 8.6 per cent from 10.8 per cent, while those claiming jobs are “hard to get” increased to 37.7 per cent from 36.1 per cent.
Consumers’ optimism about the short-term outlook continued to deteriorate in January. Those expecting business conditions to improve over the next six months declined to 15.4 per cent from 18.1 per cent. However, those expecting business conditions to worsen declined slightly to 20.6 per cent from 21.1 per cent.
Consumers’ outlook for the labour market was more pessimistic. Those anticipating more jobs in the months ahead declined to 14.3 per cent from 17.9 per cent, while those expecting fewer jobs remained virtually unchanged at 27.0 per cent. The proportion of consumers expecting their incomes to decline rose to 22.9 per cent from 19.1 per cent, while those anticipating an increase declined to 13.6 per cent from 15.6 per cent.
The next release is scheduled for Tuesday, February 26 at 10 A.M.
ORIGINAL: Minutes away from the release of the Conference Board’s monthly consumer confidence survey, due out at 10 AM ET.
Economists expect the index to fall to 64.0 from last month’s reading of 65.1.
We will have the full release LIVE at 10 AM ET. Click here to refresh for updates >