Consumer confidence falls in January as economy struggles

WASHINGTON Reuters - Consumer confidence fell unexpectedly in January as households worried about the economy's prospects over the next six months, a survey showed on Tuesday.

The Consumer Confidence Index fell to 107.1 this month from 109.0 in December. Economists polled by Reuters had predicted the index at 109.0. The labor market is tight and the survey places more emphasis on it.

Consumers' 12 month inflation expectations rose to 6.8% from 6.6% last month.

The present situation index, based on consumers' assessment of current business and labor market conditions, increased to 150.9 from 147.4 last month. The expectations index, based on consumers' short-term outlook for income, business, and labor market conditions, dropped to 77.8 from 83.4 in December.

The Conference Board says that this measure is below 80, a level that is associated with the recession.