Consumers in the US are more confident than predicted: a score of 98.1 points provides a rosier picture for spending in the first month of 2016. Among the components, the expectations component advanced to 85.9, current conditions is at 116.4 and “jobs hard to get†dropped to 23.4 points.
In the immediate aftermath, we see more of the trend seen just before the publication: a “risk on†one favoring the greenback against the euro and the yen while commodity currencies and the pound are on the rise.
In addition, the Richmond Fed manufacturing index stands at 2 points, as expected.
The Conference Board’s consumer confidence was expected to to remain unchanged at 96.5 points in January, reflecting the same level of consumption in the wake of the new year.
The mood was somewhat improving towards the publication, with the euro and the yen off their highs. A bounce back in oil helped.
Beforehand, Markit’s flash services PMI disappointed by showing a drop from 54.3 to 53.7 points. Purchasing managers see less growth in the largest US sector.
The S&P / Case Shiller HPI beat expectations with a rise of 0.5% in house prices, compared to 0.4% expected. Year over year, the pace accelerated from 5.5% to 5.8%, also faster than predicted.
The big event is tomorrow.
