The Conference Board's January Consumer Confidence Index dropped to 104.1, also accompanied by a significant decline in the Present Situation Index.
Yelena Shulyatyeva, senior US economist at the Conference Board, appears on Catalysts to discuss the impact, noting that consumer sentiment remains relatively stable despite the drop.
"The index declined for the month, but the previous month was revised upward quite substantially … the index has been moving in quite a narrow, stable range since 2022," Shulyatyeva says.
Shulyatyeva explains this means "consumers are still feeling OK about the economy" and continue to spend.
"If you compare the level of the index to the values we saw back in 2024 last year when consumers were really spending pretty well ... you can assume consumers will continue to do the same going into this year," she explains.
Additionally, she highlights inflation concerns and uncertain policy decisions as key drivers in the index decline.
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This post was written by Josh Lynch