Starting from mid November and continuing through the Christmas shopping season, the media was proclaiming an unprecedented economic boom. They made it appear as if the 90’s were back and thing were fantastic. A few good reading made them jump for joy. The regime of teh False Messiah was claiming their policies were vindicated. Even Mitt Romney said the economy was doing good. Well reality has set in. Thanks to increasing food and energy costs, consumer confidence declined in January.

Consumer confidence retreated in January after two straight months of big gains, a private research group said Tuesday.

The Conference Board’s Consumer Confidence Index fell to 61.1, from a revised 64.8 in December. Economists had expected a reading of 68. The index had surged from 40.9 in October to 64.8 in December.

The Conference Board said that even though consumers were more upbeat about jobs, they were less optimistic about income prospects. Rising gas prices have also taken a toll on sentiment.

Chicago’s PMI activity was at its lowest reading since August.

Business activity in the U.S. Midwest grew more slowly than expected in January, according to the Institute for Supply Management-Chicago’s index of Midwest business activity.

“January’s Chicago PMI reading of 60.2 compares to 62.2 in December and a market consensus of 63.0, but remains quite healthy,” said David Sloan, an economist with IFR Economics.

How’s that great economy going?