CB: US Consumer Confidence Drops to 12-Year Low in January


   
Karim Bastati
DTN Analyst

   VIENNA (DTN) -- U.S. consumer confidence in January cratered to its lowest 
since 2014 from anxiety over rising living costs, the Conference Board said in 
a survey report published Tuesday (1/27).

   "References to prices and inflation, oil and gas prices, and food and 
grocery prices remained elevated," Dana M. Peterson, chief economist at the 
board, said, citing comments from respondents to its survey.

   Developments in tariffs and trade also dominated the concerns of U.S. 
consumers, as did politics, labor, health, insurance and war issues, Peterson 
said.

   The Conference Board's headline confidence index dropped to 84.5 this month, 
reinforcing a trend seen since August and briefly interrupted only in December, 
when it was revised up 5.1 points to 94.2.

   Peterson noted that all five components of the index deteriorated in 
January, driving the overall Index to its lowest level since May 2014 to 82.2 
-- a reading that surpassed its COVID-19 pandemic depths.

   The confidence index is a gauge of the household optimism that fuels roughly 
70% of the U.S. economy through personal spending and is closely watched by 
market analysts.

   Consumers' assessments of their current economic situation -- the present 
situation index -- tumbled by 9.9 points to 113.7, the lowest since 2021. The 
expectations index fell 9.5 points to 65.1, well below the 80-point threshold 
that in the past had signaled a recession ahead.

   The U.S. dollar index extended its decline following the release of the 
report, slumping to 96.1 against a basket of foreign currencies, down 0.757 
points on the day.




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