09.01.202615:07:08UTC+00US Consumer Sentiment Rises Slightly in January

In January 2026, the University of Michigan's consumer sentiment index rose for the second month in a row, reaching 54.0. This marks its highest point since September 2025, and slightly surpasses market predictions of 53.5, as per the preliminary estimation. The increase in sentiment was primarily observed among lower-income consumers, while it experienced a decline among higher-income households. Broadly, U.S. households indicated a slight enhancement in their economic outlook over the recent two months. However, consumer sentiment remains almost 25% lower than in January 2025. Concerns persist over high prices and a weakening job market, although worries regarding tariffs are showing signs of diminishing. Meanwhile, projections of inflation for the coming year remained constant at 4.2%, representing the lowest rate since January 2025, but still significantly higher than the 3.3% recorded a year prior. Additionally, long-term inflation predictions saw a minor increase, moving up to 3.4% from 3.2% in December.