Consumer confidence is on fire.
The preliminary read on consumer confidence in January came in at 98.2, the highest since 2004.
Expectations were for the reading to come in at 94.1, up from the final 93.6 reading in December.
The assessment of current conditions from consumers also rose sharply, to 108.3 from 104.8, while expectations were up to 91.6 from 86.4.
This report follows inflation data that showed consumer prices fell 0.4% in December, which was in-line with expectations, as energy prices fell more than 9%.
Commenting on the report, Richard Curtin, chief economist for the survey said, “Consumer confidence rose in early January to its highest level in a decade. Gains in employment and incomes as well as declines in gas prices were cited by record numbers of consumers. More consumers spontaneously cited increases in their household incomes in early January than anytime in the past decade, and more households reported unprompted references to favourable employment prospects as well as lower prices than at any other time in the more than the half-century history of the surveys.”
And so consumers have clearly welcomed the decline in gas prices, and consumer confidence is just ripping higher.