Consumer Confidence Index Tops 100, at Highest Level Since 2007
For the first time in many months, the consumer confidence index reached over the 100 mark, finishing January at 102.9, its highest level since August 2007, according to The Conference Board, which provides the monthly indicator.
This month’s index was up 9.8 points from the December reading. Both of the indicator’s component indexes also gained substantially in this month. The present situation index increased by 12.7 points to 112.6, while the expectations index rose 7.9 points to 96.4.
Lynn Franco, The Conference Board’s director of economic indicators, said, “A more positive assessment of current business and labor market conditions contributed to the improvement in consumers’ view of the present situation. Consumers also expressed a considerably higher degree of optimism regarding the short-term outlook for the economy and labor market, as well as their earnings.”
In the survey from which the indexes are derived, a higher percentage of consumers described current business conditions as “good” and jobs as “plentiful” in January over December. In addition, a greater percentage of consumers expect business conditions to improve over the next six months, while a larger percentage also said jobs should be more plentiful and a higher percentage also expect their incomes to grow in that time frame.