United States: Consumer confidence slides in January
January 14, 2011
The Reuters/University of Michigan index of consumer sentiment inched down from 74.5 points in December to 74.2 points in January. Consumer sentiment slid in January as inflation concerns outweighed an improving economic outlook. In particular, consumers are worried that rising food and fuel prices will dent their purchasing power, with half of the respondents expecting their inflation-adjusted incomes to decline this year. Therefore, consumers ?are likely to again engage in selective spending cutbacks? in spite of the additional tax benefits approved in December.