Consumer sentiment is down for January at an index of 61.1, dropping from 64.8 the previous month. The Present Situation Index declined along with the Expectations Index in January.

Lynn Franco, Director of The Conference Board Consumer Research Center, said, "Consumer Confidence retreated in January, after large back-to-back gains in the final two months of 2011. Consumers' assessment of current business and labor market conditions turned more downbeat and is back to November 2011 levels. Regarding the short-term outlook, consumers are more upbeat about employment, but less optimistic about business conditions and their income prospects. Recent increases in gasoline prices may have consumers feeling a little less confident this month."

Consumers claiming business conditions are "good" dropped to 3% while those stating business conditions are "bad" increased 5.2%. Consumers saying jobs are "plentiful" dropped while those claiming jobs are "hard to get" increased.

Consumers' short-term outlook was weaker than December’s with the percentage of consumers expecting improved conditions in the next 6 months dropping while those expecting worse conditions increasing.

Source: The Conference Board