Consumer Sentiment in U.S. Unexpectedly Declined in January
Source: Bloomberg
By Katherine Peralta January 17, 2014
Consumer confidence in the U.S. unexpectedly declined in January, a sign spending may take time to accelerate early this year.
The Thomson Reuters/University of Michigan preliminary index of sentiment fell to 80.4 from 82.5 in December. Economists in a Bloomberg survey called for a reading of 83.5, according to the median estimate.
The report follows figures last week showing employment rose in December at the slowest pace in almost three years. While more job opportunities would help lift spirits, higher property values and rising equity prices are boosting household wealth and will keep consumers spending.
“The numbers tell us consumers are still likely to be cautious in spending,” said Michael Moran, chief economist at Daiwa Capital Markets America Inc., who projected a reading of 81. “I’m expecting to see some cooling off in spending in the first quarter.”
Read more: http://www.businessweek.com/news/2014-01-17/michigan-sentiment-index-decreased-to-80-dot-4-in-january
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