US consumer confidence drops in January, inflation expectations rise
Date
1/11/2025 3:13:22 AM
(MENAFN)
In January, the US consumer confidence index, as measured by the University of Michigan, dropped to 73.2, falling short of market expectations. The index declined by 0.8 points compared to December, underperforming the forecasted value of 74, which was the same as the previous month.
Despite this overall decrease, the index tracking current economic conditions, which gauges Americans' perceptions of their financial situation, rose by 2.8 points, reaching 77.9 in January. On the other hand, the consumer expectations index, which reflects the outlook for the Economy over the long term, fell by 3.1 points to 70.2.
In terms of inflation, short-term expectations climbed from 2.8% to 3.3 percent, marking the highest level since May 2024.
Similarly, long-term inflation expectations also increased, rising from 3 percent to 3.3 percent. This uptick in inflation concerns signals growing uncertainty among consumers regarding future price stability.
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