Consumer confidence drops in January : Report

WASHINGTON (MarketWatch)

A gauge of consumer confidence is at its lowest level in more than a year on lower expectations and gloomier views of the present situation, according to data released

The Conference Board reported that its gauge of consumer confidence dropped to 58.6 in January, the lowest level since November 2011
“Consumers are more pessimistic about the economic outlook and, in particular, their financial situation,” said Lynn Franco, economic indicators director at the Conference Board
“The increase in the payroll tax has undoubtedly dampened consumers’ spirits and it may take a while for confidence to rebound and consumers to recover from their initial paycheck shock.”
Analysts polled by MarketWatch had expected a January reading of 64.3, compared with an initial December estimate of 65.1, reasoning that higher payroll taxes and fiscal uncertainties would more than offset recent positive news on the labor market.
Generally when the economy is growing at a good clip, confidence readings are at least 90
The Conference Board’s barometer of consumers’ expectations fell to 59.5 in January from 68.1 in December
The expectations gauge has dropped 30% in the past few months, with protracted fiscal negotiations among U.S. lawmakers taking a toll, among other factors
Meanwhile, the Conference Board’s gauge of views on the present situation dropped to 57.3 in January from 64.6 December, the first decline since July