US Consumer Confidence Improved: What It Means for the Economy
US consumer confidence
The US Conference Board Consumer Confidence Index improved in January 2017. It was 111.8 in January compared to 113.3 in December 2016. However, it beat market expectations.
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The index showed improved figures, as consumer sentiment toward the economy is on the rise. Expectations about the business climate, personal income, and labor market conditions improved. However, the improvement remained lower compared to December figures as consumers remained cautious about near-term economic growth.
However, consumers were slightly positive about the condition of the labor market and the current business environment. This indicates that the economy could grow at a moderate pace. Trump’s policy decisions are increasing concern for market participants about whether these policies could impact the global trade flows.
The improvements in various economic indicators such as the inflation index, economic growth, and labor market conditions are increasing consumer confidence in the economy. Consumers’ long-term outlook for the economy (SPXL) (VOO) (IWM) is also changing.
In the next part of this series, we’ll analyze the performance of the Eurozone GDP in 4Q16.