From Washington Examiner:
Consumer sentiment rose to 56.4 in January, up from 52.9 in December 2025, according to the final reading of the University of Michigan Consumer Sentiment Index. Despite the gains, consumer sentiment is still down 21.3% from a year ago.
The closely watched consumer sentiment gauge has now risen for two consecutive months. This shows that sentiment is starting to move in the right direction, although sentiment has been shockingly low, rivaling the depths seen in the aftermath of the global financial crisis and the worst of the bout of high inflation under former President Joe Biden. Despite relatively strong GDP growth, households have reported in recent months that they feel worse about the economy than they did in moments of severe recession and economic turmoil.
“Consumer sentiment lifted about 3.5 index points this month, with minor gains seen across all index components,” survey director Joanne Hsu said. “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.”
Consumers are still concerned about inflation and cost of living, the report found, but year-ahead inflation expectations fell, which indicates a positive outlook on the economy.
US consumer sentiment surpassed all estimates in January and advanced by the most since June as Americans grew more optimistic about the economy and their finances.
Michael McKee reports https://t.co/tLTZbCB4v6 pic.twitter.com/ONU1WpsmZ6
— Bloomberg TV (@BloombergTV) January 23, 2026
Read more at Washington Examiner
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