Consumer sentiment shows an upward trend at the beginning of the year. Experts confirm the continued desire to buy, which supports growth.
US consumer sentiment improved at the beginning of the year. A measure of consumer confidence rose to 114.8 points in January from a revised 108.0 points in December, the Conference Board said Tuesday in its survey. Experts polled by Reuters had expected an increase to 115.0 points for January. The US economy is still running smoothly despite the central bank's high interest rate policy – also because of consumers' willingness to buy.
In the fourth quarter, it was consumers who once again stimulated the economy: their private consumption spending – which contributes more than two-thirds to economic output – grew by 3.1%. From October to December, US GDP rose 3.3% year over year.
The Fed wants to limit high inflation while at the same time ensuring a smooth landing for the economy. The IMF assumes that the Fed will succeed in this feat: for the United States, growth forecasts for 2024 have been raised significantly by 0.6 points – to 2.1%. It will likely reach 1.7% in 2025. The Fed recently left its key interest rate in a range of 5.25 to 5.5%, which, according to economists, is likely to remain unchanged on Wednesday. However, investors hope to get indications about when the interest rate announced by the monetary authorities is expected to change for this year.