Monitoring trends for over 60 years

January 27, 2012

Consumer Confidence Higher Due to Job Gains

Index of Consumer Expectations

69.1

63.6

69.3

+8.6%

-0.3%

Current Conditions Index

84.2

79.6

81.8

+5.8%

+2.9%

ward optimism, the majority of consumers remain deeply
skeptical about the prospective strength of the economy. Although twice as many anticipated an improved near- term economic outlook compared with five months ago, consumers were no more likely to expect their financial situation to improve. Moreover, confidence in government polices remains near an all-time low. Every sustained recovery in the past half century has been foreshadowed by rising confidence in government economic policies.

News of Job Gains at Record Levels

Record numbers of consumers spontaneously reported hearing about recent employment gains, tying the 1983 record. When asked about prospective changes in unemployment, consumers were not as optimistic. Half ex- pected an unchanged rate of unemployment, and the other half were equally divided between expecting increases
and expecting declines. These expectations reflect a realism that can be met by modest future job gains.

Personal Finances Still Dismal

Personal financial prospects remained troublesome for most consumers. More households reported recent in-
come declines than increases, for the 40th consecutive month. Just one-in-four households anticipated financial gains in the year ahead, but only half as many expected their inflation-adjusted income to increase during 2012.

Consumer Sentiment Index

The Sentiment Index rose to 75.0 in the January 2012 survey, up from 69.9 in December and last January's 74.2.
This marked the fifth consecutive month that the Sentiment Index increased from its August low of 55.8. It re- mained below last year's peak of 77.5 in the February 2011 survey. The Expectations Index rose to 69.1 in January from 63.6 in December but was just below last Janu-

Richard T. Curtin • Director, Thomson Reuters/University of Michigan Surveys of Consumers • Phone 734.763.5224

Thomson Reuters PR Hotline: 646.223.7222 ext. 1 • http://press.sca.isr.umich.edu

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Documents associés
Thomson Reuters/University of Michigan: Consumer Confidence Higher Due to Job Gains