US consumer confidence jumps to highest over 2 years

By Ovunc Kutlu

ISTANBUL (AA) - US consumer confidence jumped in January, rising to its highest level in more than two years, according to a New York-based research group.

The consumer confidence index, a leading indicator of consumer spending and economic activity, soared 6.8 points to 114.8, the highest reading since December 2021, the Conference Board said Tuesday in a statement.

The index was expected to come in at 115.0, while the December's revised figure stood at 108.0.

"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," said Dana Peterson, chief economist at the Conference Board.

"Buying plans dipped in January, but consumers continued to rate their income and personal finances favorably currently and over the next six months," she added.

The present situation index, based on consumers' assessment of current business and labor market conditions, surged to 161.3 in January, from 147.2 in December.

The expectations index, which is based on consumers’ short-term outlook for income, business, and labor market conditions, improved to 83.8 this month, up from a revised reading of 81.9 last month.