The U.S. consumer sentiment falls in January in the midst of shutdown and financial market concerns. The Conference Board’s index of consumer confidence dropped to 120.2 in January from December’s 126.6. The January print is below consensus expectations of 124. The fall is not unexpected, as a similar fall was seen by the University of Michigan’s consumer sentiment index, released earlier in the month.
Factors underlying the fall in sentiment were similar – shutdown concerns and financial market volatility. Given that the partial shutdown has ended, some recover in consumer sentiment is expected in the months ahead, noted Barclays in a research report.
Delving into details, much of the fall was led by the expectations index, which dropped by 10.4 points in January. Consumers’ outlook on business conditions, employment and income in the next six months turned less favourable, driving this index lower. Meanwhile, consumers’ perception of the present situation remained the same in January.
At 19:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was slightly bearish at -71.7389 more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
