Consumer confidence rose to 79.1 in January from 75.6 in December. The January result was the best reading since September 2021. Despite the slight rise, the index remained entrenched below the 100th threshold, separating pessimism from optimism among consumers.
The main improvement was driven by less pessimistic views regarding the current and future financial situation of households and about the overall economic situation in the coming year. However, household pessimism about big ticket purchases increased over the next 12 months.
FocusEconomics Consensus forecast committee members see private consumption rising 2.9% in 2023, which is 0.6 percentage points more than last month’s forecast. In 2024, our team sees household spending increase by 1.7%.