Consumer Confidence: Sharp Rebound

Bottom Line: Consumers' assessments of the economy rebounded sharply in January. Confidence, at 131.6, is above its three month average of 128.9. Consumers' assessments of current situations increased while headline expectations rose but have been somewhat volatile month-to-month over the past year. Additionally, details were mixed as 6-month outlooks for business rose slightly, prospects for income fell modestly, and employment rose modestly. Overall, confidence has plateaued but remains at high levels. Consumer Confidence ROSE by 3.4 points in January to 131.6, compared with market expectations for a decline to 128.0. The index is now 8.1% ABOVE its year-ago level. The Present Situation Index ROSE by 4.8 points to 175.3. The index is 3.0% ABOVE its year-ago level. The Expectations Index ROSE by 2.5 points to 102.5. The index is 14.7% ABOVE its year-ago level. The labor differential, the percentage of respondents who said jobs are “hard to get” from the rate who said jobs are “plentiful,” moved higher by 3.9 points to 37.4.