WASHINGTON- US consumer confidence ebbed slightly in January, with more consumers planning to purchase homes, automobiles and other big- ticket items even as they grew less optimistic about business and labor market conditions in the short term.
The survey from the Conference Board on Tuesday also showed consumers’ inflation expectations moderating for a second straight month, though still high. Labor market views softened a bit, likely reflecting the disruptions on businesses caused by the winter wave of COVID-19, fueled by the Omicron variant.
“While consumer confidence dipped this month, consumers generally have faith in the strength of this recovery,” said Robert Frick, corporate economist with Navy Federal Credit Union in Vienna, Virginia.
The Conference Board said its consumer confidence index slipped to a reading of 113.8 this month from 115.2 in December. Economists polled by Reuters had forecast the index falling to 111.8. Despite the first decline in four months, the index is well above pandemic lows.
The survey places more emphasis on the labor market, which is tightening amid worker shortages. The cutoff date for the survey was Jan. 19. The University of Michigan’s consumer sentiment index fell moderately in mid-January.
The Conference Board survey’s measure of current conditions rose, a sign that the economy entered 2022 on strong footing. Its gauge of expectations for growth in the short term eased in line with views that Omicron will slow economic growth this quarter. – Reuters
