Theresults of the Conference Board’s January consumer confidence survey are out.
The headline index increased to 80.7 in January, beating analyst expectations of 78.0 (and up from last month’s revised print of 77.5).
The present situation index edged up to 79.1 from 75.3 and the expectations index increased to 81.8 from 79.0.
Markets are up on the news, with both the Dow and S&P 0.60% higher.
Here’s the full release from the Conference Board:
The Conference Board Consumer Confidence Index®, which had rebounded in December, increased again in January. The Index now stands at 80.7 (1985=100), up from 77.5 in December. The Present Situation Index increased to 79.1 from 75.3. The Expectations Index increased to 81.8 from 79.0 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 16.
“Consumer confidence advanced in January for the second consecutive month,” said Lynn Franco, Director of Economic Indicators at The Conference Board. “Consumers’ assessment of the present situation continues to improve, with both business conditions and the job market rated more favourably. Looking ahead six months, consumers expect the economy and their earnings to improve, but were somewhat mixed regarding the outlook for jobs. All in all, confidence appears to be back on track and rising expectations suggest the economy may pick up some momentum in the months ahead.”
Consumers’ assessment of overall present-day conditions continues to improve. Those claiming business conditions are “good” increased to 21.5 per cent from 20.2 per cent, while those claiming business conditions are “bad” edged down to 22.8 per cent from 23.2 per cent. Consumers’ appraisal of the labour market was also more positive. Those saying jobs are “plentiful” ticked up to 12.7 per cent from 11.9 per cent, while those saying jobs are “hard to get” decreased slightly to 32.6 per cent from 32.9 per cent.
Consumers’ expectations, which had improved sharply in December, increased again in January. Those expecting business conditions to improve over the next six months remained unchanged at 17.4 per cent, while those anticipating business conditions to worsen decreased to 12.1 per cent from 13.9 per cent. Consumers’ outlook for the labour market was mixed. Those expecting more jobs in the months ahead declined to 15.4 per cent from 17.1 per cent. However, those anticipating fewer jobs decreased to 18.3 per cent from 19.4 per cent. The proportion of consumers expecting their incomes to increase rose to 15.8 per cent from 13.9 per cent, while those anticipating a decrease in their incomes declined to 13.6 per cent from 14.3 per cent.