National Association of Home Building economics analyst Jing Fu reports on the latest Consumer Confidence Index released in January by The Conference Board, which showed a slight increase to 98.1. Short-term outlook improved, with 16.2% of respondents saying that they expected business conditions will improve over the next six months, an increase from December's 14.5%. Consumers were also more confident about jobs, as 13.2% of respondents expected that there will be more jobs over the next six months, and the share of respondents expecting an increase in income over the next six months increased by 1.8% to 18.1%.
The Conference Board also reported the shares of respondents planning to buy a home within six months. The shares of respondents planning to buy a lived-in home within six months fell to 3.5% in January, from 3.9% in December. The share of respondents planning to buy a new home within six months declined to 0.7% in January, from 1.6% in December.
Overall, despite the monthly volatility, the trends in the shares of respondents planning to buy a new home and the shares of respondents planning to buy a lived-in home within six months are climbing up from the trough and consumer confidence has been moving up toward the pre-recession level since 2010.
The present situation index for January remained the same compared to December at 116.4, while the expectations index rose to 85.9 in January from 83.0 in December.