2018.01.3021:36:00UTC+00US Consumer Confidence Rebounds in January

Consumer optimism in the United States rebounded in January, following a sudden decline in December.

The Conference Board's measure of consumer confidence increased to 125.4 in January. The measure had fallen to 122.1 in December. The key index climbed to 129.5 in November, the highest mark since the index notched 132.6 in November 2000.'

Strong consumer morale and rising household wealth as a result of record gains on the U.S. stock market and increasing house prices, which have left Americans less fearful about the future. That is encouraging some to dip into their savings to fund purchases.

However, consumers were less confident in their assessment of current conditions. They were also doubtful about their income prospects over the coming months, which the survey attributed to “some uncertainty regarding the impact of the tax plan.”

The index takes into account Americans' views of current economic conditions and their expectations for the next six months. Economists pay close attention to the numbers because consumer spending accounts for nearly 70 percent of U.S. economic activity.

The survey's so-called labor market differential, derived from data about respondents who think jobs are difficult to get and those who think jobs are plentiful, increased to a cycle high of 21.2 in January from 20.3 in December.

This measure closely correlates to the jobless rate in the Labor Department's employment report and is consistent with further absorption of labor market slack. The labor market is near full employment, with the jobless rate at a 17-year low of 4.1 percent.