U.S. Consumer Confidence Index Soars in January
Economics / US Economy Jan 26, 2011 - 01:36 AM GMTThe Conference Board's Consumer Confidence Index rose to 60.6 in January from 53.3 in December. The January reading is the highest since May 2010. The Present Situation Index (31 vs. 24.9 in December) and Expectations Index (80.3 vs. 72.3 in December) advanced in January.
Indexes tracking if jobs are hard to get (43.4 vs. 46.0 in December) and if jobs are plentiful (5.2 vs. 4.2 in December) present a change in perception of labor market conditions. The net of these two indexes moves in tandem with the jobless rate of the nation and it dropped in January (38.2 vs. 41.8) to the lowest level since May 2009, implying a likely decline in the unemployment rate (see Chart 2) during January. Although the link between consumer spending and confidence measures is tenuous, the Fed frequently mentions consumer confidence measures in its policy statements.
Asha Bangalore — Senior Vice President and Economist
http://www.northerntrust.com
Asha Bangalore is Vice President and Economist at The Northern Trust Company, Chicago. Prior to joining the bank in 1994, she was Consultant to savings and loan institutions and commercial banks at Financial & Economic Strategies Corporation, Chicago.
Copyright © 2011 Asha Bangalore
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