The University of Michigan Consumer Sentiment Index climbed to 78.8 in January, vs. 70.0 consensus, from 69.7 in December.
The index now is at its highest level since July 2021, as consumers remained confident that inflation is heading south, with inflation expectations softening further during the month.
"Over the last two months, sentiment has climbed a cumulative 29%, the largest two-month increase since 1991 as a recession ended," said Surveys of Consumers Director Joanne Hsu.
"Sentiment has now risen nearly 60% above the all-time low measured in June of 2022 and is likely to provide some positive momentum for the economy. Sentiment is now just 7% shy of the historical average since 1978," she added.
Expectations: 75.9 vs. 67.0 consensus and 67.4 prior.
Current Conditions: 83.3 vs. 73.0 expected and 73.3 prior.
Year-ahead inflation expectations fell to 2.9% from 3.1% in the previous month. The latest reading is the lowest since December 2020 and is now within the 2.3-3.0% range seen in the two years before the pandemic.
Five-year implied inflation also slipped to 2.8% from 2.9% in December.
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The index now is at its highest level since July 2021, as consumers remained confident that inflation is heading south, with inflation expectations softening further during the month.
"Over the last two months, sentiment has climbed a cumulative 29%, the largest two-month increase since 1991 as a recession ended," said Surveys of Consumers Director Joanne Hsu.
"Sentiment has now risen nearly 60% above the all-time low measured in June of 2022 and is likely to provide some positive momentum for the economy. Sentiment is now just 7% shy of the historical average since 1978," she added.
Expectations: 75.9 vs. 67.0 consensus and 67.4 prior.
Current Conditions: 83.3 vs. 73.0 expected and 73.3 prior.
Year-ahead inflation expectations fell to 2.9% from 3.1% in the previous month. The latest reading is the lowest since December 2020 and is now within the 2.3-3.0% range seen in the two years before the pandemic.
Five-year implied inflation also slipped to 2.8% from 2.9% in December.
Consumer sentiment jumps more than expected to highest since July 2021
The University of Michigan Consumer Sentiment Index climbed to 78.8 in January, vs. 70.0 consensus, from 69.7 in December. The index now is at its highest level
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