Consumer Confidence Unexpectedly Falls

Consumer confidence unexpectedly fell to start 2023, according to The Conference Board’s Consumer Confidence Index.

• M-O-M: The Consumer Confidence Index fell to 107.1, down from December’s revised 109.0 which is the highest level since February 2022.

• Y-O-Y: Consumer Confidence is down 5.7 points when compared to the same time last year.

Future Concerns Rise. January’s decline was thanks to a drop in the expectations index as the present situation index was actually up for the month…

• The Present Situation Index increased to 150.9, up 3.5 points from last month.

• The Expectations Index fell to 77.8, down 5.6 points from December.

Analysis. Ataman Ozyildirim, Senior Director of Economics at The Conference Board, said consumers are concerned about business conditions and feel their income will be stable but are not less likely to buy a home. “Consumers were less upbeat about the short-term outlook for jobs. They also expect business conditions to worsen in the near term. Despite that, consumers expect their incomes to remain relatively stable in the months ahead. Meanwhile, purchasing plans for autos and appliances held steady, but fewer consumers are planning to buy a home—new or existing.”