The Strategist

Consumer confidence index in the US in January updates maximum since July 2021

01/22/2024 - 02:31

In January of 2024, the U.S. consumer confidence index increased from 69.7 points to 78.8 points, the highest level since July 2021, reads an early report from the University of Michigan, the organization that determines this metric.

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According to Trading Economics, the analysts' consensus estimate called for increase to 70 points.

In January of the previous year, the indicator's value was 64.9 points.

While the indicator of consumer expectations for the next six months grew to 75.9 points from 67.3 points, the sub-index measuring U.S. consumers' sentiments toward the current financial situation increased to 83.3 points this month from 73.3 points the previous month.

The University of Michigan observed that "confidence in improved inflation and higher income expectations positively influenced consumer views."

The public's estimate of inflation for the upcoming year dropped this month to 2.9% from 3.1% in December of last year, a three-year low, while the estimate of inflation for the long run (five years) dropped to 2.8% from 2.9%.