U.S. consumer confidence tumbled this month, tested by the partial government shutdown and roiling financial markets. Still, consumer spirits remains robust by historic standards.
The Conference Board, a business research group, said Tuesday that its consumer confidence index fell to 120.2 in January, down from 126.6 in December.
The index measures consumers’ assessment of current economic conditions and their expectations for the next six months. Both declined in January.
Officials at the Board indicated market volatility and the government shutdown appeared to have weighed on consumers.
The government reopened Monday after the 35-day shutdown, the longest federal closure in U.S. history. The shutdown is expected to cause slight permanent harm to the economy — about $3 billion — according to a new government report.
Meantime, the U.S. economy is healthy. Economic growth clocked in at a brisk 3.4% annual pace from July through September after surging 4.2% in the second quarter. At 3.9%, the unemployment rate is near its lowest level in five decades.
