US consumer confidence index to rise further to 128.0 in February - Nomura

Analysts at Nomura expect Conference Board’s consumer confidence index of US to rise further to 128.0 in February from 125.4 in January.

Key Quotes

“Incoming data on the labor market point to continued vigor. The labor market indicator of this survey still reflects healthy job market conditions. Further, although there was a pick-up in volatility in equity and bond prices, we think the favorable assessment of the recent tax cut likely outweighed negative news about financial markets. For many consumers, the new federal withholding tax rates kicked in around late January and early February with direct effect on their after-tax income. The University of Michigan consumer sentiment index rose strongly in February, likely driven by these new tax policies.”