Consumer confidence in the Atlantic region recovered somewhat in January 2012 after a large decline the previous month. Sentiment regarding household budgets and employment prospects both declined compared to December, although sentiment regarding the timing of major purchases improved significantly.

Sentiment about making major purchases, such as a home or a car, improved considerably in January from the previous month, but remained in negative territory. A negative balance of sentiment means more survey respondents said it was a bad time to buy a big-ticket item, such as a home or car, than said it was a good time to do so. This indicator is an important factor underlying the housing market.

The balance of sentiment about household budgets in the Atlantic region remained in positive territory in January but receded from levels recorded in November and December of 2011. The number of respondents expecting household budgets to improve and worsen both declined, while those expecting no change increased.

The balance of opinion about employment moved deeper into negative territory in January, marking a further deterioration from the positive reading in November.