US consumer confidence declined in January after seeing a rise last December, according to data released by The Conference Board on Tuesday.

The Consumer Confidence Index, a leading indicator to predict consumer spending and economic activity, fell 1.4 points to 113.8 in January, from 115.2 in December 2021.

The market consensus was for it to come in at 111.8.

“Consumer confidence moderated in January, following gains in the final three months of 2021,” said Lynn Franco, senior director of economic indicators at The Conference Board.

Citing improvement in the Present Situation Index, Franco said the economy entered the “new year on solid footing.”

“However, expectations about short-term growth prospects weakened, pointing to a likely moderation in growth during the first quarter of 2022,” he added.

“Meanwhile, concerns about inflation declined for the second straight month, but remain elevated after hitting a 13-year high in November 2021,” he said.

Both confidence and consumer spending may continue to be challenged by rising prices and the ongoing pandemic, he added.

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