US Conference Board Consumer Confidence index fell to 107.1 in January from 108.3 in previous month. Today’s reading came in below analysts’ estimates of 109.0.
Further details of the publication showed:
- US 1-year consumer inflation rate expectations rose to 6.8% in January vs revised 6.6% in December.
- Present situation index 150.9 vs 147.2 prior
- Expectations index 77.8 vs 82.4 prior
- Jobs hard-to-get 11.3 vs 11.9 prior
One-year inflation expectations rebounded from its lowest since August 2021, which is not what FED would like to see. Source: Bloomberg via ZeroHedge
“Consumers’ assessment of present economic and labor market conditions improved at the start of 2023," said Ataman Ozyildirim, Senior Director, Economics at The Conference Board. "However, the Expectations Index retreated in January reflecting their concerns about the economy over the next six months. 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. Consumers’ expectations for inflation ticked up slightly from 6.6 percent to 6.8 percent over the next 12 months, but inflation expectations are still down from its peak of 7.9 percent last seen in June.”
Earlier MNI Chicago Business Barometer in the US decreased to 44.3 in January from the previous month's 45.1, missing market expectations of 45.0. The reading pointed to a fifth consecutive month of contraction in business activity in the Chicago region.
EURUSD is rather unimpressed by today's data. The pair continues to trade around 1.0850 level. Source: xStation5
