United States: U.S. consumer confidence moderates in January, reflecting concerns about the outlook

After climbing to a 15-year high of 113.3 in December, the Conference Board’s consumer confidence index fell to 111.8 in January, undershooting the markets’ expectations of a shallower drop to 112.8.

According to the Conference Boards, January’s decline was solely the result of consumers’ less optimistic outlook for business conditions, jobs and especially their income prospects. Conversely, consumers’ assessment of current economic conditions improved in January. However, despite January’s fall, U.S. households remain confident that the economy will continue to expand in the coming months.

The Conference Board survey period concluded on 19 January, one day before Donald Trump’s inauguration.

FocusEconomics Consensus Forecast panelists expect private consumption to grow 2.6% in 2017, which is up 0.1 percentage points from last month’s forecast. For 2018, the panel sees private consumption increasing 2.4%.