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01-29-20 | Economic News

Monthly Report of Consumer Confidence Up

Outdoes Expectations

Among the consumer opinions surveyed, the availability of jobs was deemed as strong by the second largest percentage of responders since the economic expansion. "This... will likely support spending," according to the Wells Fargo Economics Group.

Hitting its highest level since August, the Consumer Confidence Index gained 3.4 points in January to end at 131.6. Prospects of easing the trade tensions between the U.S. and China likely had a hand in the optimism hike as the Phase I trade deal was signed during the information gathering period for this latest survey.

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By segment, "the present situation index" increased 4.8 points to 175.3, supported by a strong labor market. "The labor differential," or the difference between those who view jobs as plentiful versus hard to get, grew to its second highest level of the expansion. "Consumer expectations" also added points, but "income expectations" did not.

The Wells Fargo Economics Group concluded that "consumer spending should remain a key driver of growth this year."

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