U.S. consumer sentiment weakened for a second consecutive month in January to hit its lowest level in more than a year, with a record number of consumers citing the recent fiscal cliff debate in Washington, the University of Michigan reported Friday. The university's preliminary January reading fell to 71.3 from the final December reading of 72.9. The index is at its lowest point since December 2011, and the January decline was bigger than economists had expected. “The most unique aspect of the early-January data was that an all-time record number of consumers—35 percent—negatively referred to the fiscal cliff negotiations," survey director Richard Curtin said in a statement. “Importantly, the debt ceiling debate is still upcoming and could further weaken confidence." The survey's measure of current economic conditions fell to its lowest level since July, dropping to 84.8 from 87.0. The gauge of consumer expectations fell to its lowest point since November 2011, declining to 62.7 from 63.8. Economists closely watch consumer-confidence indexes for clues on consumer spending, which accounts for 70 percent of U.S. economic activity.
