US Conference Board Consumer Confidence rose from 110.7 to 114.8 in January, above expectation of 113.2, and marks the highest level since December 2021. Present Situation Index rose sharply from 147.2 to 161.3. Expectations Index also improved slightly from 81.9 to 83.8.
Dana Peterson, The Conference Board’s Chief Economist, attributes this surge in consumer confidence to several key factors, including decelerating inflation, prospects of future interest rate reductions, and the robust employment environment, as companies exhibit a tendency to retain labor.
Furthermore, consumers’ perception of the likelihood of a US recession within the upcoming year has continued to diminish, aligning with the Expectations Index’s climb above 80.
