US Consumer Sentiment: Confidence falls back from recent heights - Wells Fargo

The University of Michigan Consumer Sentiment Index fell to 94.4 in January. According to analysts from Wells Fargo, consumers apparently are reacting to rising prices for big-ticket purchases. 

Key Quotes: 

“The 1.5 point drop in consumer sentiment was larger than expected. All of the drop came in the current conditions series, which fell 4.6 points. Consumers appear to be put off by higher prices for gasoline and motor vehicles.”

“Even with the slight pullback, consumer sentiment remains high. Consumers may take a breather following the strong fourth quarter, when retail sales surged at an 11.3 percent annual rate.

“The expectations series rose 0.5 points to 84.8 in early January. The increase was less than expected, particularly given the stock market’s strong start. Expectations should have gotten a boost from tax reform but the headlines have hardly been positive.”