U.S. consumers’ confidence in the economy reached a two-year high in January, Reuters reports.
What’s going on: “The Conference Board said on Tuesday that its consumer confidence index rose to 114.8 this month, the highest reading since December 2021, from a downwardly revised 108.0 in December. Economists polled by Reuters had forecast the index rising to 115.0 from the previously reported 110.7.”
- The index measures Americans’ assessment of the current economic landscape and their forecast for the next six months.
- However, consumers’ intent to buy larger items, such as homes and cars, declined slightly this month.
Why it’s important: “January’s increase in consumer confidence likely reflected slower inflation, anticipation of lower interest rates ahead and generally favorable employment conditions as companies continue to hoard labor,” Conference Board Chief Economist Dana Peterson said.