U.S. Consumer Confidence Surges in January, Well Above Expectations - University of Michigan
20 January 2024 - 2:51AM
Dow Jones News
By Ed Frankl
Sentiment among U.S. consumers jumped again in January, easily
beating expectations as inflation expectations dip further, a
striking reversal from the record low of June 2022.
The preliminary reading Friday of the University of Michigan's
consumer-confidence index climbed to 78.8 points in January from
69.7 in December. Economists polled by The Wall Street Journal had
expected it to increase less steeply, to 70.2.
The index reached its highest level since July 2021 and measured
the largest two-month increase since 1991, after surging in
December too, survey director Joanne Hsu said.
"Consumer views were supported by confidence that inflation has
turned a corner and strengthening income expectations," she
said.
Inflation expectations for next year fell to 2.9% from 3.1% in
December, the lowest since the final month of 2020 and now tracking
levels of two years prior to the pandemic. It comes after the
Federal Reserve has signaled that interest-rate increases are
likely over for this cycle.
For the second straight month, all five index components of the
survey rose, with confidence especially improving in the short-run
outlook for business conditions and in current personal finances,
the data said.
Sentiment improved across age, income, education and geography,
with Democrats and Republicans alike the most optimistic since the
summer of 2021, Hsu said. Republicans have frequently criticized
President Biden over inflation and made recent economic malaise a
central plank of their pitch to voters, while the Biden
administration has pointed to a strong labor market and easing
inflation over the past year.
Write to Ed Frankl at edward.frankl@wsj.com
(END) Dow Jones Newswires
January 19, 2024 10:36 ET (15:36 GMT)
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