Consumer sentiment dips in January
Despite January's relative retail merchandising success in boosting sales for the second month in a row, according a panel of economists surveyed by Bloomberg News, consumers may not be espousing such a rosy vision for the future.
The latest Thomsom Reuters/University of Michigan preliminary index of consumer sentiment shows that optimism fell to 72.5 in January, from 75 in December, a separate article from Bloomberg reports.
Prior to the index's release, Bloomberg News predicted that January would see only a slight fall in sentiment to 74.8. However, a 22-cent average increase in the price of a gallon of gasoline over the year has stifled the will to spend among some consumers.
"It's likely due to the gas prices and some payback for the strong gains we've seen in recent months," Gus Faucher, a senior economist at PNC Financial Services Group, told the source. "The recovery is going to continue and spending will be good, but not great."
Additionally, experts believe that an improving employment rate could help fuel spending and consumer confidence.
