American consumers are kicking off 2023 slightly less confident than they were at the end of last year as inflation and the possibility of a recession loom.

The Conference Board reported Tuesday that its consumer confidence index slipped to 107.1 in January, down from 109 in December. Last month's reading was the highest the index has reached since April.

The business research group's present situation index — which measures consumers' assessment of current business and labor market conditions — rose to 150.9 from 147.4.

The board's expectations index — a measure of consumers' six-month outlook for income, business and labor conditions — deteriorated to 77.8 in January from 83.4 in December. A reading under 80 often signals a recession in the coming year, the Conference Board said.