US: UoM Consumer Sentiment Index declines to 79.2 in January vs. 80 expected

Consumer confidence in US continued to weaken in January.
S&P 500 remains on the back foot after the report.

Eren Sengezer FXStreet

The Consumer Sentiment Index in the US fell to 79.2 in January from 80.7 in December, the University of Michigan's latest Surveys of Consumers showed on Friday. This reading came in lower than the market expectation of 80.

Further details of the publication revealed that the Current Economic Conditions Index declined to 87.7 from 90 and the Index of Consumer Expectations edged lower to 73.8 from 74.6.

Commenting on the report, "consumer sentiment posted trivial declines in early January despite the horrendous rise in covid-19 deaths, the insurrection, and the impeachment of Trump," said Surveys of Consumers chief economist, Richard Curtin. "Two offsetting shifts helped narrow the January loss in sentiment: the covid-19 vaccines and a partisan shift in expectations due to the anticipated impact of Biden's economic policies."

Market reaction

This market mood remains sour after this report. As of writing, the S&P 500 Index was last seen losing 0.55% on the day at 3,775.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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