Consumer confidence dips slightly in January, though still relatively robust.

The Conference Board reports a decline in U.S. Consumer Confidence this montt. As the chart below shows, however, it remains elevated.

From the Conference Board release:

The Conference Board Consumer Confidence Index® declined in January, after an increase in December. The Index now stands at 113.8 (1985=100), down from 115.2 in December. ThePresent Situation Index—based on consumers’ assessment of current business and labor market conditions—improved to 148.2 from 144.8 last month. The Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions—declined to 90.8 from 95.4. 

“Consumer confidence moderated in January, following gains in the final three months of 2021,” said Lynn Franco, Senior Director of Economic Indicators at The Conference Board. “The Present Situation Index improved, suggesting the economy entered the new year on solid footing. However, expectations about short-term growth prospects weakened, pointing to a likely moderation in growth during the first quarter of 2022. Nevertheless, the proportion of consumers planning to purchase homes, automobiles, and major appliances over the next six months all increased.” “Meanwhile, concerns about inflation declined for the second straight month, but remain elevated after hitting a 13-year high in November 2021. Concerns about the pandemic increased slightly, amid the ongoing Omicron surge. Looking ahead, both confidence and consumer spending may continue to be challenged by rising prices and the ongoing pandemic.”

Here’s he Associated Press report. 

We’ve noted the several major economic concerns, including inflation, persistent unemployment, declining retail sales,  and the labor shortage. That consumer confidence did not dip more sharply is a good sign.