WASHINGTON: US consumer confidence rose moderately in January while lingering concerns about the COVID-19 pandemic led to a further deterioration in households’ perceptions of the labour market, raising the risk of a second straight month of job losses.
The Conference Board said on Tuesday its consumer confidence index increased to a reading of 89.3 this month from 87.1 in December. Economists polled by Reuters had forecast the index little changed at 89 in January. The slight increase likely reflected the rolling out of vaccines for the coronavirus, which lifted consumers’ near-term expectations.
The index was at 132.6 last February. The cut-off date for the survey was Jan. 14.
The survey’s present situation measure, based on consumers’ assessment of current business and labour market conditions, fell to a reading of 84.4 from 87.2 in December. The expectations index based on consumers’ short-term outlook for income, business and labour market conditions increased to 92.5 from a reading of 87.0 in December.
A separate report on Tuesday showed the S&P CoreLogic Case-Shiller 20-metro-area house price index jumped 9.1% from a year ago in November after rising 8.0% in October.
Robust house price inflation was corroborated by a third report showing the Federal Housing Finance Agency (FHFA) house price index surged a seasonally adjusted 11.0% year-on-year in November after increasing 10.3% in October.
The FHFA’s index is calculated by using purchase prices of houses financed with mortgages sold to or guaranteed by mortgage finance companies Fannie Mae and Freddie Mac.
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