empty
25.01.2022 06:22 PM
US consumer confidence declines

US consumer confidence decreased in January, for the first time in four months. Americans changed their views on economic and labor market prospects: more consumers planning to buy houses, cars and other other high-priced products, although their optimism about business and labor market conditions has reduced in the near term.

US consumer confidence dceclines

According to a Conference Board report on Tuesday, US consumer confidence fell to 113.8 from a downwardly revised 115.2 in December. Economists had expected a drop to 111.

The figures mean fewer consumers are expecting the economy to improve, incomes to rise and new jobs to appear in the next six months.

At the same time, Americans were more optimistic about current business conditions. The percentage of respondents who consider conditions favourable rose to a six-month high, and shopping plans strengthened.

Lynn Franco, senior director of economic indicators at the Conference Board in Washington said that the current conditions index had improved, suggesting that the economy had entered 2022 on solid footing. She noted that expectations for short-term growth prospects had weakened, indicating a likely slowdown in the first quarter of 2022.

The Conference Board's expectations index fell to 90.8 from 95.4, while the current conditions indicator improved to a five-month high of 148.2.

Franco also added that the percentage of consumers planning to buy houses, cars and large appliances in the next six months had increased. The drop in confidence likely indicates an increase in COVID-19 infections.

According to official data, an average of 696,541 new coronavirus cases are reported daily in the United States. The winter wave of infections caused by the Omicron variant is likely to subside in some regions, including hardest-hit New York.

As for business conditions, news of mergers and super profits for companies in 2021 affect consumer opinion. However, the situation is pessimistic concerning consumption.

In fact, inflation is the reason for it. The traditional way to secure from inflation is buying real estate, cars, etc. as soon as possible.

Besides, consumer activity with considerable growth of prices is not considered positive, especially taking into account Goldman Sachs outlook to decrease the economic indicators for the first half of 2022.

In the meantime, this news certainly will not be favourable for the indices.

Egor Danilov,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

US Market News Digest for May 1

The US stock market weathered notable volatility in April, but a successful rally helped major indices recoup losses. Despite data showing a 0.3% contraction in US GDP for the first

Ekaterina Kiseleva 11:54 2025-05-01 UTC+2

Feast in the Storm: S&P 500 Celebrates Gains as Dollar Drowns and China Weakens

S&P 500 Posts Sixth Straight Day of Gains Oil Falls More Than 1% China Manufacturing Activity Plummets as Trump Tariffs Continue to Squeeze Dollar Set for Worst Month

Thomas Frank 12:09 2025-04-30 UTC+2

US Market News Digest for April 30

US stock indices remain on a positive trajectory, but market pressure has intensified due to a sharp drop in Super Micro shares and the upcoming earnings reports from tech heavyweights

Ekaterina Kiseleva 11:13 2025-04-30 UTC+2

Stock markets regaining optimism. Where to find new entry points

European stocks rose amid hopes of easing trade tensions between the US and China. WTI oil fell by 1.54% to $62.05, while Brent declined by 1.51% to $65.86

12:42 2025-04-29 UTC+2

US Market News Digest for April 29

The S&P 500 and Nasdaq continue to climb, maintaining their upward momentum despite mixed performances across other sectors. Softer rhetoric from the Trump administration and expectations of further tariff relief

Ekaterina Kiseleva 11:59 2025-04-29 UTC+2

Optimism returns to the markets: where to look for new growth points

European stocks rose amid hopes for a reduction in trade tensions between the US and China. WTI oil fell by 1.54% to $62.05, Brent by 1.51% to $65.86

Thomas Frank 10:42 2025-04-29 UTC+2

US Market News Digest for April 28

The S&P 500 and Nasdaq ended the previous trading session higher, defying choppy performance across Asian and European exchanges. Investors are now focused on the upcoming economic data and earnings

Ekaterina Kiseleva 11:31 2025-04-28 UTC+2

Trump's first 100 days behind us: Markets await tariffs, earnings from giants

Trump policy summaries European stocks rose on Monday after a second straight weekly gain Investors are eyeing tariff changes, as well as a busy week of earnings and economic data

Thomas Frank 11:22 2025-04-28 UTC+2

Wall Street surges: Nasdaq soars 2.74% as tech stocks drive market higher

Procter & Gamble and PepsiCo fell after cutting forecasts, while Hasbro and ServiceNow jumped following their earnings reports. March durable goods orders surged more than expected. Alphabet beat revenue expectations

12:52 2025-04-25 UTC+2

US Market News Digest for April 25

US stock indices closed higher for the third straight session, buoyed by a sharp rally in the technology sector. The Nasdaq surged 2.74%, driven by strong earnings reports from companies

Ekaterina Kiseleva 11:42 2025-04-25 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.