Consumer confidence falls 1.4 points in January amid high inflation

Consumer confidence falls 1.4 points in January amid high inflation

A survey of consumer confidence in the U.S. fell 1.4 points in January to 113.8, indicating that omicron and high inflation weighed on the minds of Americans early in the new year.

The index would shrink to 111.7 from a revised 115.2 in December, according to economists polled by The Wall Street Journal.

The index was ranging from a high of 128.9 after a lull in the pandemic last summer to as low as 85.7 at the beginning of the crisis.

The index has fallen recently due to the delta and omicron outbreaks and a surge in inflation.

The economy was negatively affected by the record wave of omicron cases. Millions of people were sick and had to take time off from work. The spirits of consumers have been dampened by high inflation and scattered shortages of goods and services.

There is good news that coronaviruses are falling again, jobs are plentiful and wages are rising. Business leaders say there is a lot of demand for their goods and services and they expect the economy to speed up again. The confidence survey found that a majority of people said they plan to buy a home, a car or major appliance in the next six months.

Key details: An measure of how consumers feel about the economy right now increased by 3.4 points to 148.2.

A similar gauge that looks ahead six months slid to 90.8 from 95.4, suggesting some uncertainty about the next stage of the epidemic.

Worries about inflation fell for the second month in a row. In November, concerns about inflation had hit a 13 year high.

The board's senior director of economic indicators, Lynne Franco, said that consumer spending and confidence may continue to be challenged by rising prices and the ongoing epidemic.

Market reaction: Dow Jones Industrial Average DJIA, and S&P 500 SPX, sank again in Tuesday trades, a day after a wild swing on Wall Street.

The Federal Reserve is expected to raise interest rates in the near future, which has led to a drop in U.S. stock prices.