US Consumer Confidence retreats from multi-year highs - Wells Fargo

Analysts from Wells Fargo, point out that despite the decline in Consumer Confidence from cycle highs, consumers reported an improvement in labor market condition in January. 

Key Quotes: 

“Consumer confidence slipped 1.5 points to start 2017, after surging to a cycle-high in December. The decline was solely due to a drop in optimistic outlook for conditions over the next six months, while confidence for present conditions edged higher.”

“ After surging in December, consumers’ expectations for business conditions, jobs and incomes all fell in January. The measure of income expectations saw the largest decline. 

“Consumers’ assessment of current employment conditions has improved along with the tightening U.S. labor market. The proportion of consumers claiming jobs are hard to get has fallen meaningfully in line with the unemployment rate.”