Consumer confidence falls to lowest level

WASHINGTON

U.S. consumer confidence tumbled this month to its lowest reading in a year and a half, tested by the partial government shutdown and roiling financial markets. Still, consumer spirits remain robust by historic standards.

The Conference Board said Tuesday its consumer confidence index fell to 120.2 in January, down from 126.6 in December and the lowest level since July 2017.

The index measures consumers’ assessment of current economic conditions and their expectations for the next six months. Both declined. Consumers’ expectations for the future dropped to the lowest point since October 2016.

The U.S. economy is healthy. Economic growth clocked in at a brisk 3.4 percent annual pace from July through September after surging 4.2 percent in the second quarter. At 3.9 percent, the unemployment rate is near its lowest level in five decades.

The U.S. stock market is steadier after wild gyrations and heavy losses late last year. Still there are worries. The Federal Reserve has gradually been raising interest rates. A government report issued Monday predict economic growth will slow as the effects of President Donald Trump’s tax cuts for businesses begin to drop off.

Global growth is sputtering, with the U.S.-China trade war threatening to disrupt global commerce.

Staff/wire reports