The consumer confidence index increased to 125.4 in January from a revised 123.1 last month, The Conference Board reported Tuesday.
The December index was originally reported as 122.1.
Economists polled by IFR Markets predicted a 122.8 reading for the index.
The present situation index slid to 155.3 from a revised 156.5, first reported as 156.6, while the expectations index grew to 105.5 from a revised 100.8, first reported as 99.1.
“Consumer confidence improved in January after declining in December,” said Lynn Franco, director of economic indicators for The Conference Board. “Consumers’ assessment of current conditions decreased slightly, but remains at historically strong levels. Expectations improved, though consumers were somewhat ambivalent about their income prospects over the coming months, perhaps the result of some uncertainty regarding the impact of the tax plan. Overall, however, consumers remain quite confident that the solid pace of growth seen in late 2017 will continue into 2018.”
Business conditions were called “good” by 34.9% of respondents in January, off from 35.8% of respondents in December. Those saying conditions are “bad” rose to 12.7% from 11.7%.
The percentage of consumers expecting a pickup in business conditions in the next half year gained to 22.0% from 21.6%, while 9.8% said they expect conditions to worsen, up from 9.0% in the prior month.
On the jobs front, those who believe jobs are “plentiful” increased to 37.6% from 36.3% in last month, while the number saying jobs are “hard to get” rose to 16.4% from 16.0%. The respondents who see fewer jobs becoming available in a half year, decreased to 11.8% from 15.9%. Those expecting more jobs to become available inched up to 19.0% from 18.9%, The Conference Board reported.
The consumer confidence survey is based on a probability design random sample by the Nielsen Company.
