trending Market Intelligence /marketintelligence/en/news-insights/trending/ssgqtzooxvha9ntct9gcdq2 content esgSubNav
In This List

January US consumer sentiment revised up as outlook improves

Blog

Using ESG Analysis to Support a Sustainable Future

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook


January US consumer sentiment revised up as outlook improves

The monthly decline in U.S. consumer confidence in January was smaller than initially estimated, according to the final results of a University of Michigan survey, which showed consumers' continued optimism for growth in jobs and incomes.

The consumer confidence index reading for last month was raised to 95.7 from the preliminary reading of 94.4. However, it was still 0.2% lower than the 95.9 reading in December 2017 and was down 2.8% year over year.

The measure of current economic conditions fell 2.9% to 110.5 in January from 113.8 in the prior month, while the consumer expectations index rose 2.4% to 86.3 from 84.3. Preliminary results of the survey showed that the consumer expectations index edged up 0.6% to 84.8 from December 2017.

Richard Curtin, the survey's chief economist, said consumers continued to expect growth in jobs and incomes, but anticipated a slightly higher inflation rate.

"Importantly, the motivating force behind purchase decisions has shifted from discounts on prices and interest rates to increased confidence in future job security and growth in wages as well as financial assets," he said.

"The tax cuts will increase discretionary spending once higher energy bills due to the unusually cold weather are paid," Curtin added.

Curtin said the survey data signal an expected 2.8% increase in real personal consumption expenditures in 2018.