Business

US Consumer Sentiment Improves in January
By Reuters | 23 Jan, 2026

The Consumer Sentiment Index improved to 56.4 from 52.9 in December despite continuing concerns about high prices and jobs.

U.S. consumer sentiment improved across the board in January, though concerns about high prices and the labor market lingered, a survey showed on Friday.

The University of Michigan's Surveys of Consumers said its Consumer Sentiment Index increased to a final reading of 56.4 this month, from an earlier estimate of 54.0. The index was at 52.9 in December. Economists polled by Reuters had forecast the index would be unrevised from the preliminary estimate.

"While the overall improvement was small, it was broad based, seen across the income distribution, educational attainment, older and younger consumers, and Republicans and Democrats alike," Joanne Hsu, the director of the Surveys of Consumers, said in a statement. "However, national sentiment remains more than 20% below a year ago, as consumers continue to report pressures on their purchasing power stemming from high prices and the prospect of weakening labor markets."

The survey's measure of consumer expectations for inflation over the next year slipped to 4.0%, the lowest reading since January 2025, from an earlier estimate of 4.2%. Consumers' expectations for inflation over the next five years dipped to 3.3% from a preliminary estimate of 3.4%. Long-term inflation expectations edged up from 3.2% last month.

(Reporting By Lucia Mutikani; Editing by Chizu Nomiyama )