US Consumer Confidence Remains High

U.S. Consumer Confidence Remained High Despite Decline This Month

This month, U.S. consumer confidence declined as persistent inflation and the highly-transmissible Covid omicron variant dampened Americans'  optimism.

The Conference Board, a business research organization, reported Tuesday that its consumer confidence index — which considers consumers' views of present circumstances and the future — dropped to 113.8 in January from 115.2 in December.

The present situation index from the Conference Board, which measures consumers' views of current business and labor conditions, rose in January to 148.2 from 144.8 in December. In January, the expectations index based on consumers' six-month outlook for income, business and labor market factors fell to 90.8 from 95.4 last month.

Despite record-breaking price increases for nearly everything, consumer confidence in the United States remains strong. In December, the Labor Department said that inflation rose at its fastest rate in nearly 40 years with a 7% rise.

Despite rising prices in 2021 for automobiles, gas, food, and furnishings, the American consumer has not been deterred. According to the Conference Board, the proportion of individuals who intend to buy a house, automobile, or major appliances in the next six months rose.

Inflation is still a major worry, according to the Fed. Concern about inflation fell for the second month in a row, but it remains high after reaching a 13-year high in November, according to the board.

On Wednesday, the Federal Reserve is widely expected to signal its intention to start raising interest rates in March for the first time in three years, with the primary tool against inflation. Economists are concerned that the Fed is already moving too slowly to combat rising prices.

With the prospect of higher rates on the horizon, investors are dumping their holdings at a record pace. The S&P 500 index suffered its worst weekly loss since the epidemic began in March 2020 last week, when a sell-off drove it down almost 1,000 points. On Monday, the Dow Jones Industrial Average fell over 1,000 points before rallying

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