The Conference Board reported today that consumer confidence gave back about all of its December gain. The level fell 3.0% in January to a reading of 87.9. The decline was slightly less than had been expected by economists but it was to a point near the low of last year.

A decline in the expectations component accounted for all of last month's decline with an 8.2% m/m drop. Expectations for employment (more jobs) and for business conditions deteriorated.

The percentage of respondents planning to buy an existing home fell but those planning to buy a new home rose to the highest in four months. Those planning to buy a major appliance rose to the highest level since August.

Respondents planning to buy an automobile within the next six months rose sharply

The present conditions index rose 2.1% and that made up just a small piece of the declines during the last nine months of 2007. Just 20.7% of respondents saw business conditions as good, near the least since 2004, but a slightly greater 23.9% saw jobs as plentiful.

The expected inflation rate in twelve months fell m/m to 5.3% but that still was up from the 5.1% expected rate during 2006 and 2007.