US consumer confidence collapsed in late 2007 as the US housing bubble burst and the US economy went into recession. By 2016, it had clawed its way back to neutral. Since then, American household confidence has gone from strength to strength. However, the latest figures may cause investors to wonder if the period of US consumer optimism is over.
The latest Conference Board survey indicates US consumers remain quite optimistic but not quite to the same degree as the heady levels in December. The latest came in at 120.2, down from December’s reading of 126.6 and lower than January 2018’s comparable figure of 124.3. However, this figure is still well above average.
US bond yields finished the day a touch lower. 2-year and 30-year Treasury bond yields were both unchanged at 2.60% and 3.07% respectively while 10-year yields slipped 1bp to 2.75%.