Consumer confidence in January is the highest it has been in two years, good news for the economy as the Federal Reserve works to bring down inflation and avoid a recession.
The Conference Board’s consumer confidence index rose to 114.8 in January, up from a revised 108 from the month before, the group announced on Tuesday. That is the highest consumer confidence reading since December 2021.
Of interest, the expectations index is now above 80 for two months in a row. Readings below 80 typically signal a recession is likely within the coming year, according to the Conference Board. Consumers’ perceived likelihood of a recession continued to fall as well.
“January’s increase in consumer confidence likely reflected slower inflation, anticipation of