US Consumer Confidence Declines for Second Consecutive Month

Economic concerns over labor market conditions, inflation, and housing costs weigh on sentiment as confidence index drops to 104.1 in January.

The Conference Board's consumer confidence index fell to 104.1 in January, down from a revised 109.5 in December, marking the second straight monthly decline.
Consumers' assessment of current economic conditions dropped by 9.7 points, while short-term expectations for income, business, and jobs also weakened.
Inflation concerns and persistently high housing costs, including record median home prices and 7% mortgage rates, are contributing to growing economic anxiety.
The labor market showed signs of cooling, with views on job conditions declining for the first time since September, though overall stability has kept the Federal Reserve cautious about rate cuts.
Despite declining confidence, consumer spending remained resilient in December, with retail sales rising 0.4%, supporting GDP growth of 3.1% in the third quarter of 2024.