The Conference Board Consumer Confidence Index Decreased in January

Decline Driven by Government Shutdown; Significant Slowdown Unlikely in Coming Months

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Jan 29, 2019, 10:00 ET

NEW YORK, Jan. 29, 2019 /PRNewswire/ -- The Conference Board Consumer Confidence Index^® decreased in January, following a decline in December. The Index now stands at 120.2 (1985=100), down from 126.6 in December. The Present Situation Index – based on consumers' assessment of current business and labor market conditions – declined marginally, from 169.9 to 169.6. The Expectations Index – based on consumers' short-term outlook for income, business and labor market conditions – decreased from 97.7 last month to 87.3 this month.

The monthly Consumer Confidence Survey^®, based on a probability-design random sample, is conducted for The Conference Board by Nielsen, a leading global provider of information and analytics around what consumers buy and watch. The cutoff date for the preliminary results was January 17.

"Consumer Confidence declined in January, following a decrease in December," said Lynn Franco, Senior Director of Economic Indicators at The Conference Board. "The Present Situation Index was virtually unchanged, suggesting economic conditions remain favorable. Expectations, however, declined sharply as financial market volatility and the government shutdown appear to have impacted consumers. Shock events such as government shutdowns (i.e. 2013) tend to have sharp, but temporary, impacts on consumer confidence. Thus, it appears that this month's decline is more the result of a temporary shock than a precursor to a significant slowdown in the coming months."

Consumers' appraisal of current conditions was little changed in January. The percentage of consumers claiming business conditions are "good" was virtually unchanged at 37.4 percent, while those saying business conditions are "bad" decreased from 11.6 percent to 11.1 percent. Consumers' assessment of the labor market was mixed. Those stating jobs are "plentiful" increased from 45.5 percent to 46.6 percent, while those claiming jobs are "hard to get" also increased, from 12.2 percent to 12.9 percent.

Consumers' optimism about the short-term future was more pessimistic in January. The percentage of consumers expecting business conditions will improve over the next six months decreased from 18.1 percent to 16.0 percent, while those expecting business conditions will worsen increased from 10.6 percent to 14.8 percent.

Consumers' outlook for the labor market was also less favorable. The proportion expecting more jobs in the months ahead decreased from 16.6 percent to 14.7 percent, while those anticipating fewer jobs increased, from 14.6 percent to 16.5 percent. Regarding their short-term income prospects, the percentage of consumers expecting an improvement declined from 22.4 percent to 18.2 percent, but the proportion expecting a decrease also declined, from 7.6 percent to 7.1 percent.

Source: January 2019 Consumer Confidence Survey^®
The Conference Board

The Conference Board publishes the Consumer Confidence Index^® at 10 a.m. ET on the last Tuesday of every month. Subscription information and the technical notes to this series are available on The Conference Board website: https://www.conference-board.org/data/consumerdata.cfm.

About The Conference Board
The Conference Board is the member-driven think tank that delivers trusted insights for what's ahead. Founded in 1916, we are a non-partisan, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States. www.conference-board.org.

ABOUT NIELSEN
Nielsen Holdings plc (NYSE: NLSN) is a global performance management company that provides a comprehensive understanding of what consumers watch and buy. Nielsen's Watch segment provides media and advertising clients with Total Audience measurement services for all devices on which content — video, audio and text — is consumed. The Buy segment offers consumer packaged goods manufacturers and retailers the industry's only global view of retail performance measurement. By integrating information from its Watch and Buy segments and other data sources, Nielsen also provides its clients with analytics that help improve performance. Nielsen, an S&P 500 company, has operations in over 100 countries, covering more than 90 percent of the world's population. For more information, visit www.nielsen.com.

SOURCE The Conference Board