Upcoming Week: consumer sentiment, fresh housing sales, inflation report

Next week will feature several significant business events and economic indicators that are eagerly anticipated by analysts and consumers alike.

**Consumer Confidence Assessment**
On Tuesday, the Conference Board will present its most recent consumer confidence report. Analysts predict a further dip in consumer confidence for February. This index gauges how Americans perceive the current economic situation and what they anticipate for the next six months. Despite ongoing pressures from inflation, consumer morale and spending have shown resilience.

Here’s a look at the consumer confidence index for recent months:
– September: 99.2
– October: 109.6
– November: 112.8
– December: 109.5
– January: 104.1
– February (estimated): 102.6

**Housing Market Insights**
The Commerce Department is set to release its monthly update on new U.S. home sales on Wednesday. Economists believe that sales experienced a slight decline in January, with an estimated seasonally adjusted annual rate of 680,000 homes sold. Despite a rise in sales during December, the overall housing market appears constrained, challenged by relatively high mortgage rates, strong demand, and insufficient supply of both newly constructed and existing homes.

Monthly new home sales figures, adjusted for seasonality, include:
– August: 691,000
– September: 726,000
– October: 615,000
– November: 674,000
– December: 698,000
– January (estimated): 680,000

**Inflation Watch**
On Friday, the Commerce Department will announce vital consumer inflation data that garners significant attention. Economists anticipate that the report will indicate a slight decrease in inflation rates for January. The inflation rate was recorded at 2.1% as of September, which sits marginally above the Federal Reserve’s target of 2%. However, there has been a general upward trend in inflation since that point.

Here are the annual percentage changes in the PCE Deflator, after seasonal adjustment:
– August: 2.3
– September: 2.1
– October: 2.3
– November: 2.5
– December: 2.6
– January (estimated): 2.5

This upcoming week will provide critical insights into consumer behavior, housing market dynamics, and inflation trends, shaping the economic outlook in the weeks to follow.