The Conference Board published a report on Tuesday indicating a decline in the U.S. consumer confidence index, which had previously been adjusted upward for January.
According to the report, the consumer confidence index fell to 104.1 in January, down from a revised 109.5 in December. This decrease diverged from economists' expectations, who had anticipated a rise to 106.3 from the initially reported 104.7 the previous month.
"Consumer confidence has been stable, moving sideways within a narrow range since 2022. January was consistent with this trend," remarked Dana M. Peterson, Chief Economist at The Conference Board. "The index declined for a second consecutive month, remaining within its established range, albeit at the lower end."
The Conference Board highlighted that the present situation index—which evaluates consumers' perceptions of current business dynamics and the labor market—dropped to 134.3 in January, down from 144.0 in December.
"Significantly, perceptions of the labor market deteriorated for the first time since September, with business condition assessments also weakening for the second consecutive month," explained Peterson.
"Furthermore, consumers expressed less optimism regarding future business conditions and, to a slightly lesser extent, their income," she continued. "The pessimism about future employment prospects observed in December persisted into January."
The report also noted a decrease in the expectations index, which reflects consumers' short-term outlook on income, business, and labor market conditions, slipping to 83.9 in January from 86.5 in December.
