US consumer confidence dips again to start the year,
according to business group
WASHINGTON (AP) U.S. consumer confidence dipped
for the second consecutive month in January, a business
research group said Tuesday
The Conference Board reported that its consumer confidence index retreated this month to 104.1, from 109.5 in December. That is worse than the economist projections for a reading of 105.8
December's reading was revised up by 4.8 points but still
represented a decline from November
The consumer confidence index measures both Americans’
assessment of current economic conditions & their outlook
for the next six months
Consumers appeared increasingly confident heading into the
end of 2024 & spending during the holiday season was
resolute
In the face of higher borrowing costs, retail sales rose 0.4% in
December & stores generally reported healthy sales during
the winter holiday shopping season
The board said that consumers’ view of current conditions
tumbled 9.7 points to a reading of 134.3 in January, views on
current labor market conditions fell for the first time since
September
The measure of Americans’ short-term expectations for income, business & the job market fell 2.6 points to 83.9
The Conference Board says a reading under 80 can signal a
potential recession in the near future
However, the proportion of consumers expecting a recession
over the next 12 months remained stable at the low end of the
series range
Though the board’s index has declined the past two months,
consumers continue to spend, helping to prop up the U.S
economy since the sharp rebound from the COVID-19 recession in the spring of 2020
In December, the government said that the U.S. economy grew
at a healthy 3.1% annual clip from July through September,
propelled by vigorous consumer spending & an uptick in
exports.GDP growth has topped 2% in eight of the last nine
quarters
All of that spending could be catching up to consumers. The
Federal Reserve Bank of Philadelphia reported last week that
credit card balances & delinquencies