Consumer Sentiment Reaches Highest Level Since September, But Macro Concerns Persist

11:54 AM EST, 01/09/2026 (MT Newswires) -- US consumer sentiment improved in January to its highest point since September, but remained subdued compared to year-ago levels amid inflation and labor market concerns, preliminary results from a University of Michigan survey showed Friday.

The main sentiment index rose to 54 this month from 52.9 in December. The consensus was for a 53.5 reading in a Bloomberg-compiled survey.

Consumer sentiment, however, plunged nearly 25% from January 2025.

"Improvements in January were seen among lower-income consumers, while sentiment fell for those with higher incomes," Surveys of Consumers Director Joanne Hsu said in a statement.

"While consumers perceived some modest improvement in the economy over the past two months, their sentiment remains nearly 25% below last January's reading," Hsu said. "They continue to be focused primarily on kitchen table issues, like high prices and softening labor markets."

The gauge for current economic conditions advanced to 52.4 from 50.4 last month, topping the Street's view. The expectations measure edged up to 55 from 54.6, in line with market estimates. Both indexes logged double-digit declines year over year.

"Although consumers' worries about tariffs appear to be gradually receding, they remain guarded about the overall strength of business conditions and labor markets," according to Hsu. "Note that more than 90% of interviews for this release were collected prior to the capture of (Nicolas) Maduro in Venezuela."

US President Donald Trump recently announced that US forces carried out a large scale strike against Venezuela, capturing its leader Maduro. Delcy Rodriguez was sworn in as Venezuela's acting president on Monday.

Year-ahead inflation expectations held steady in January at 4.2%, the lowest in 12 months. The five-year inflation outlook rose to 3.4% from 3.2% in December.

Data showed Friday that the US economy added fewer jobs than projected in December, while the unemployment rate moved down, likely supporting the case for a pause on interest rate cuts.

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