U.S. consumer confidence falls in January

Consumer confidence decreased in January as consumers were less optimistic about employment conditions and income prospects, according to The Conference Board.

The Conference Board's Consumer Confidence Index fell to 111.8 in January from 113.3 in December 2016. A reading of 90 or higher indicates a healthy economy.

The index measures how shoppers feel about business conditions, the job market and the next six months. Economists watch the index closely because consumer spending accounts for about 70 percent of economic activity and is a critical part of a strong rebound.

Those expecting business conditions to improve during the next six months decreased from 24.7 percent to 23.1 percent, and those expecting business conditions to worsen rose from 8.9 percent to 10.7 percent.

Additionally, 19.8 percent expect more jobs during the next six months compared with 21.7 percent in December 2016. Those expecting fewer jobs was unchanged at 14 percent.

"Consumer confidence decreased in January, after reaching a 15-year high in December," says Lynn Franco, The Conference Board's director of economic indicators. "The decline in confidence was driven solely by a less optimistic outlook for business conditions, jobs and especially consumers' income prospects. Consumers' assessment of current conditions, on the other hand, improved in January. Despite the retreat in confidence, consumers remain confident that the economy will continue to expand in the coming months."

Date : 2/10/2017