Consumer Confidence Collapses As Job Hopes Crash Most In 50 Years

After tumbling in December, expectations were for a further decline in The Conference Board consumer confidence data and despite the resurgence of the stock market, confidence plunged more than expected.

The headline confidence index fell to 120.2 from a revised lower 126.6 (and well below the 124.0 expected). Both Current and future expectations also plunged...

The Conference Board's Consumer Confidence Index was 120.2 in Jan, compared to 128.1 in Dec, 136.4 in Nov and 137.9 (18-year high) in Oct. The cumulative loss since Oct is now 17.7 points (12.8%), the worst string of losses since Oct 2011.

But The Conference Board remains optimistic and suggests you ignore this data...

"The Present Situation Index was virtually unchanged, suggesting economic conditions remain favorable. Expectations, however, declined sharply as financial market volatility and the government shutdown appear to have impacted consumers.

Shock events such as government shutdowns (i.e. 2013) tend to have sharp, but temporary, impacts on consumer confidence.

Thus, it appears that this month’s decline is more the result of a temporary shock than a precursor to a significant slowdown in the coming months."

Americans’ current perceptions about the labor market remain high, but they’re less confident the good times will last as the new year approaches as the share expecting more jobs in the next six months fell to 14.7 percent from 22.7 percent, the steepest two-month drop since 1968...