U.S. consumer sentiment lost momentum in January as the Conference Board’s consumer confidence index fell to 84.5 from a revised 94.2 (from 89.1), hitting its lowest level since 2014.
From the data release: “The Current Situation Index – based on consumers’ assessment of current business and labor market conditions – fell 9.9 points in January to 113.7. The Expectations Index – based on consumers’ near-term outlook for income, business and labor market conditions – fell 9.5 points to 65.1, well below the 80 threshold that typically signals an impending recession.”
According to Dana M. Peterson, chief economist at The Conference Board: “Confidence declined in January as consumer concerns deepened both about the current situation and expectations for the future. All five components of the Index deteriorated, bringing the overall Index to its lowest level since May 2014 (82.2) – exceeding the depth of the Covid-19 pandemic.”
Market reaction
The US Dollar (USD) continues its ongoing decline, motivating the US Dollar Index (DXY) to break below the support at 97.00 and hit its lowest level so far this year.
