US job market optimism fades in January
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The news: US consumer confidence fell to a four-month low in January, with the Conference Board index declining to 104.1 from 109.5 in December.
The numbers: Economists polled by Reuters had forecast a rise to 105.6. The drop reflected reduced optimism about the labour market and the economy.
The share of consumers saying jobs were plentiful reached its lowest level since September, while more respondents said jobs are hard to get.
Buying conditions for big-ticket items, including cars, houses and appliances, weakened due to high borrowing costs and persistent inflation.
Inflation expectations for the coming year rose, and write-in responses showed that more than half of consumers expect higher interest rates, with concerns about potential tariffs from the Trump administration contributing to inflation worries.
Vacation plans, particularly for international travel, also fell to their lowest point since October 2022.
What they said: Dana Peterson, chief economist at the Conference Board, highlighted renewed pessimism about future employment prospects.
“All five components of the Index deteriorated but consumers' assessments of the present situation experienced the largest decline,” she said.
“Notably, views of current labour market conditions fell for the first time since September, while assessments of business conditions weakened for the second month in a row. Meanwhile, consumers were also less optimistic about future business conditions and, to a lesser extent, income. The return of pessimism about future employment prospects seen in December was confirmed in January.”
The sources: Conference Board , Reuters
