US consumer confidence rises in January

US consumer confidence rose in January, comfortably surpassing economists’ expectations, according to data released by the Conference Board.

The consumer confidence index increased to 98.1 from 96.3 in December, beating consensus forecasts for a reading of 96.5.

The present situation index was unchanged at 116.4, while the expectations index was up at 85.9 from 83 in December.

“Consumer confidence improved slightly in January, following an increase in December,” said Lynn Franco, director of economic indicators at The Conference Board.

“Consumers’ assessment of current conditions held steady, while their expectations for the next six months improved moderately. For now, consumers do not foresee the volatility in financial markets as having a negative impact on the economy.”

Dennis de Jong, managing director at UFX.com, said: “Despite global economic volatility, that US consumer confidence levels are higher than expected will be music to the ears of Fed Chair Janet Yellen.

“The US job market has surely contributed to the feel good vibe, with unemployment at a seven year low, in addition to sinking prices at the pumps providing consumer’s wallets with a much needed fillip.”