Source: Economics Group of Wells Fargo Bank, N.A.
Summary
Consumer confidence has jumped higher in the wake of the 2024 election, as it did after the election in 2016. Today’s reading for January puts confidence squarely in the middle of the range of where it has been for the past year and a half.
Confidence Drops to a 4-Month Low
The 104.1 reading for consumer confidence in January was a bit short of the consensus expectation. It would have represented only a slight drop from December’s initially reported 104.7 reading, but an upward revision lifted that to 109.5, making today’s print comparatively disappointing (chart). It is also undeniable that this January reading represents a four-month low. Consumers’ assessment of the present situation dropped more than 9 points to 134.3 from 144.0 in the prior month (chart). What is weighing on consumers’ collective psyche?