Data released today showed that the Consumer Sentiment index fell to 91.2 in January, the weakest in two years. The government shutdown weighed on overall sentiment, but the underlying trend in consumer confidence appears to be moderating, mentioned analysts at Wells Fargo.
Key Quotes:
“The partial government shutdown has weighed on optimism. Given that the tentative resolution only provides funding until February 15, uncertainty here may continue to weigh on confidence. The resolution did nudge sentiment higher than initially reported.”
“Despite the shutdown, consumer sentiment appears to be moderating. Consumers’ attitudes towards large ticket purchases continue to trend lower. In a separately released report this week from the Conference Board, we learned consumer confidence slipped for the third straight month in January. The more measured level of optimism demonstrated by these two indicators is likely to weigh on the pace of consumer spending this year.”
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