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Tale of two consumers continues as US consumer sentiment slips

Reuters with CNBC.com
Friday, 17 Jan 2014 | 9:55 AM ET
January consumer sentiment 80.4
Friday, 17 Jan 2014 | 9:55 AM ET
That is a miss, says CNBC's Rick Santelli with the latest read on consumer confidence in the economy.

U.S. consumer sentiment slipped in its first January measure, weighed by lowered expectations among lower- and middle-income families, a survey released on Friday showed.

The Thomson Reuters/University of Michigan's preliminary reading on the overall index on consumer sentiment came in at 80.4, down from 82.5 in December.

(Click here to track the U.S. stock indices following the report.)

It was below the median forecast of 83.5 among economists polled by Reuters.

"Upper-income households benefited from continued strong gains in income as well as increases in stock and home values," survey director Richard Curtin said in a statement. "Low- and middle-income households were mainly concerned about lackluster growth in employment and income, and anticipated less improvement in long-term prospects for the economy."

The survey's barometer of current economic conditions fell to 95.2 from 98.6 and below a forecast of 98.5.

The survey's gauge of consumer expectations slipped to 70.9 from 72.1 and below a forecast of 74.2.

The survey's one-year inflation expectation was unchanged from last month at 3.0 percent, while the survey's five-to-10-year inflation outlook rose to 2.9 percent from 2.7 percent.

—Reuters with CNBC.com

CORRECTION: An earlier version of this story said that consumer sentiment rose in January.

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