U.S. consumer confidence index fell to a low of fear of further deterioration

Recently announced the results of a survey show that the January U.S. consumer confidence unexpectedly worsening for two months in a row and fell to the lowest in more than a year, many consumers said this is subject to the subsequent effects of the recent "financial cliff". In addition, analysts believe that the U.S. consumer confidence still further deterioration of the space.

Reuters said that the past two months, while consumer confidence to drop, the United States is also carried out tit-for-tat budget negotiations, the outcome of the consultations is to many Americans to pay more taxes. In a few weeks after the financial agreement, U.S. President Barack Obama and Republican members of Congress or to cut spending and to enter a new round of tough negotiation, which may be a further blow to consumer confidence.

According to this survey published by Thomson Reuters and the University of Michigan, U.S. January consumer sentiment index to 71.3, the highest, the lowest since December 2011. Survey director Richard Curtin pointed out in a statement issued on the value data in early January, the most special is that financial cliff consultation is a negative factor, the proportion of consumers surveyed up to 35%, setting a new record high. "importantly, the debt ceiling negotiations coming, may further weaken confidence, "he said.

New York Jefferies & Co. Currency market analyst Thomas Simmons said that the handling of the negotiations of the fiscal cliff, well aware of the tax-free period is about to end, plus the expected revenue will be reduced, these may be depressed consumer confidence factors.

"Due to the debt ceiling issue has not yet been resolved, the future will face more political controversy, we believe that the fear of further deterioration in consumer confidence." Simmons said.

Reuters pointed out, Republican lawmakers in the House of Representatives has already hinted that the debt limit is reached in mid-February to early March, when the U.S. government, they have the potential to support short-term solution raised the debt ceiling. If the U.S. Congress fails to raise the debt limit, it may lead to government default, so as to shake the market.