U.S. consumer confidence drops in January as possible recession looms

Customers shop at a store in Queens, New York, the United States, on Jan. 12, 2023. (Photo by Ziyu Julian Zhu/Xinhua)

"Consumer confidence declined in January, but it remains above the level seen last July, lowest in 2022," an expert said.

WASHINGTON, Jan. 31 (Xinhua) -- U.S. consumers rang in the first month of the new year a little less confidently, according to data released on Tuesday.

The Conference Board's consumer confidence index fell to 107.1 in January, a slight dip from 109 in the month prior.

"Consumer confidence declined in January, but it remains above the level seen last July, lowest in 2022," said Ataman Ozyildirim, senior director, economics at The Conference Board. "Consumer confidence fell the most for households earning less than 15,000 (U.S. dollars) and for households aged under 35."

The organization's present situation index, a measure of consumers' assessment of labor and business trends, climbed to 150.9 from 147.4 last month.

However, the expectations index, a measure of consumers' short-run views on income, labor and business conditions, fell to 77.8 from last month's 83.4.

All this comes as economists predict a possible recession in this year's second half.

The data was released a day before the U.S. Federal Reserve is expected to raise interest rates.