By Walter Kurtz, Sober Look
January US consumer confidence from the Conference Board came in materially below consensus today.
Reuters: – Consumer confidence dropped in January to its lowest level in more than a year as Americans were more pessimistic about the economic outlook and their financial prospects, according to a private sector report released on Tuesday.
The Conference Board, an industry group, said its index of consumer attitudes fell to 58.6 from an upwardly revised 66.7 in December, falling short of economists’ expectations for 64. It was the lowest level since November 2011.
At the same time US equity markets continue to march higher. In fact the divergence between consumer sentiment and the stock market has become quite pronounced and is unlikely to be sustainable over the longer term. Ultimately, weak sentiment will result in lower sales.
S&P500 index is adjusted for dividends (total return)