- Posted February 01, 2012
- Tweet This | Share on Facebook
Consumer confidence falls in January
By Anne D'Innocenzio
AP Retail Writer
NEW YORK (AP) -- Consumer confidence fell in January after two straight months of big gains because Americans were less optimistic about their incomes, a private research group reported.
The Conference Board says Tuesday that its Consumer Confidence Index is at 61.1, down from a revised 64.8 in December. The fall comes after the index had surged by more than 20 points last month from 40.9 in October amid growing signs of an improving economy. A reading of 90 indicates a healthy economy, a level it hasn't approached since the recession began in 2007.
Economists watch the confidence numbers closely because consumers' spending accounts for about 70 percent of U.S. economic activity. The current reading indicates that consumers' confidence is beginning to wane a bit.
One gauge of the index, which measures how shoppers feel now about the economy, declined to 38.4 from 46.5. The other gauge, which measures shoppers' outlook over the next six months, edged down to 76.2 from 77 in December.
"Consumers' assessment of current business and labor market conditions turned more downbeat," said Lynn Franco, director of The Conference Board Consumer Research Center in a statement.
Franco noted that recent increases in gasoline prices may have consumers' feeling "a little less confident this month." Indeed, gas prices rose by a penny on Monday to $3.43 per gallon, according to the AAA, Wright Express and Oil Price Information Service. A gallon of regular is 15.3 cents higher than it was a month ago and 33 cents higher than it was last year.
Americans have other reasons to be cautiously optimistic. The jobless rate is at the lowest level in nearly three years, but it's still at a high 8.5 percent. Economists predict that 155,000 more net jobs were created in January, but the unemployment rate is expected to be the same. The government releases the job figures for January Friday.
And consumers are still worried about the higher costs they're paying for household basics and the weak housing market. U.S. home prices fell for a third straight month in nearly all cities tracked by a major index.
As a result, Americans tempered their enthusiasm for the future. Over the next six months, consumers were more upbeat about employment, but less so about business conditions and their income prospects.
Published: Wed, Feb 1, 2012
headlines Detroit
- Freelance court reporter enjoys serving as ‘guardian of the record’
- Federal judges approve redraw of Detroit-area state House seats ahead of 2024 election
- Many deserving candidates for Outstanding Hypocrite Award
- Daily Briefs
- LAWBreaks offers students pro bono lawyering opportunities over winter break
headlines National
- 50 Years of Service: ABA has been a ‘stalwart ally’ for LSC funding
- ACLU and BigLaw firm use ‘Orange is the New Black’ in hashtag effort to promote NY jail reform
- Biden recalls time he bluffed knowledge of torts case and why he changed his mind about civil-trial work
- Lawyers’ ‘barrage of personal attacks’ on opponents started with tissue-box toss, appeals court says
- Longtime prosecutor resigns after judge tosses him from case, citing Perry Mason-type revelations
- 24% of law students expect to work in public service, survey says