Michigan Consumer Sentiment Index Rises More Than Expected in Preliminary January Survey

10:07 AM EST, 01/09/2026 (MT Newswires) -- The University of Michigan's preliminary consumer sentiment index rose to 54.0 in January from 52.9 in December, above expectations for a smaller increase to 53.5 in a survey compiled by Bloomberg.

The current conditions index rose to 52.4 in January from 50.4 in December, while the expectations reading rose to 55.0 from 54.6.

Respondents saw one-year inflation expectations at 4.2%, unchanged from December, while five-year inflation expectations accelerated to 3.4% from 3.2%.

Michigan said over 90% of the interview were conducted prior to capture of Venezuelan President Nicolas Maduro.

The increase in sentiment in January was seen among lower-income consumers, while sentiment declined among those with higher incomes. Despite the improvement, sentiment is still nearly 25% below the reading in January 2024.

Consumers remain focused on higher price and softer labor markets, with less worries about tariffs but elevated concerns about business conditions.

The twice-monthly Michigan Sentiment index measures consumer sentiment early in the current month (the preliminary estimate) and is then revised later in the month (the final estimate). The headline index is a combination of the current assessment and expectations for the near future.

An increase in the reading suggests consumers are more confident, a positive for stocks if that confidence translates into spending. Increased demand is usually inflationary, a negative for bonds.

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