US: Consumer Confidence holds firm despite Iran, impeachment and virus – Wells Fargo
The Consumer Sentiment Index measured by the University of Michigan rose to 99.8 in January. According to analysts at Wells Fargo, recent events were insufficient to rattle US consumer confidence.
“The University Michigan’s measure of consumer sentiment revealed that a crisis in Iran, the impeachment trial of a sitting president and a fast-spreading virus were insufficient to rattle the confidence of U.S. consumers.”
“The preliminary read for January consumer sentiment earlier this month came in at 99.1. Given the sheer volume of potentially negative developments from geopolitics to the fast-spreading Wuhan virus, it is remarkable that today’s report showed an upward revision to 99.8.”
“Consumer inflation expectations rose in January, but remain near all-time lows. Both year-ahead and long-term expectations rose to 2.5%, after hitting remarkably low levels in December.”