RCM/TIPP US Economic Confidence Slightly Declines at the Start of the Year

Economic Optimism Dips at the Start of the Year

In January, investor confidence experienced a notable 9% decline, accompanied by a 1.5% decrease in overall optimism. The RealClearMarkets/TIPP Economic Optimism Index, which serves as an early indicator of U.S. consumer sentiment each month, dropped from 47.9 in December to 47.2 in January—a reduction of 0.7 points, or 1.5%. This marks the fifth consecutive month the index has remained below the neutral threshold of 50, signaling continued pessimism across the country.

The latest figure of 47.2 sits 3.9% beneath the long-term 25-year average of 49.1, suggesting that public confidence is still lagging and has yet to make a full recovery. Investor sentiment, in particular, continues to show signs of weakness.