In the preliminary January reading, six-month-ahead consumer expectations for business conditions, jobs, and income deteriorated significantly.

While expectations for business conditions and jobs are currently above levels seen during the last debt ceiling debate, the net percent expecting higher income is below, suggesting the recent changes to payroll taxes might be affecting consumers' outlook.

Six-Month-Ahead Consumer Expectations, SA, net percent of participants expecting

Additional detail:

  • The net percent anticipating better business conditions six months from now decreased from a net -3 percent to -5.2 percent.
  • The net percent anticipating more jobs six months from now worsened from a net -9.0 percent to -12.7 percent.
  • The net percent expecting higher income six months from now worsened from a net -3.5 percent to -9.3 percent.