- Conference Board index decreased to 104.1 in January
- Share saying jobs are plentiful also lowest since September
US consumer confidence unexpectedly fell in January to a four-month low on less optimism about the labor market and the outlook for the broader economy.
The Conference Board’s gauge of confidence decreased 5.4 points to 104.1 this month, data released Tuesday showed. The median estimate in a Bloomberg survey of economists called for a reading of 105.7.
A gauge of present conditions dropped nearly 10 points, while the group’s measure of expectations for the next six months declined to a lesser extent.
Inflation is easing only gradually, and while the labor market looks good on paper, jobseekers say it’s taking longer and longer to find work. And sentiment has been shaky as consumers assess how Donald Trump’s policies will affect the economy.
The share of consumers that said jobs were currently plentiful fell this month to the lowest since September, and a larger net share said jobs were hard to get. The difference between these two — a metric closely followed by economists to gauge the job market — narrowed by the most since April.
“The return of pessimism about future employment prospects seen in December was confirmed in January,” Dana Peterson, chief economist at The Conference Board, said in a statement.
Buying conditions for big-ticket items such as cars, houses and appliances softened. That likely reflects still-elevated prices as well as high borrowing costs, with the Federal Reserve poised to hold interest rates at an elevated level at its meeting this week.
Inflation expectations over the coming year increased. Other measures of the inflation outlook have also picked up recently as consumers worry about potential tariffs from the Trump administration.
In write-in responses to the survey, more than half of consumers said now they expect higher interest rates over the next 12 months.
Weaker income prospects likely dampened consumers’ vacation plans, which dropped this month to the lowest since October 2022 — particularly for international travel and by plane.
Written by: Maria Clara Cobo — With assistance from Chris Middleton @Bloomberg
The post “US Consumer Confidence Drops to Four-Month Low on Job Market” first appeared on Bloomberg