USA Consumer Sentiment Subdued by Payroll Tax Hike

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USA Consumer Sentiment: Thomson Reuters / University of Michigan

Payroll Tax Hike Narrows January Gains in Consumer Confidence

"The Sentiment Index was 73.8 in the January 2013 survey, up from 72.9 in December, but below last January’s reading of 75.0. The two components of the index moved in opposite directions. The Expectations Index posted a gain to 66.6 in January from 63.8 in December, while the Current Economic Conditions Index declined to 85.0 in January from 87.0 in December."

USA Consumer Sentiment by Month



Richard Curtin, Director of the Thomson Reuters/University of Michigan Surveys of Consumers, said "The end of the payroll tax holiday had a significant impact on consumer confidence, especially among lower income households. When asked to describe recent changes in their financial situation, declines in disposable incomes were much more frequent among households with incomes below $75,000. Indeed, higher income households much more frequently mentioned income gains in January than in the December survey. While consumer spending will slow in 2013, spending by higher income households, especially on interest sensitive purchases of homes, vehicles and household durables, will keep consumer spending slowly expanding in 2013."

USA Consumer Sentiment by Year



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