Consumer sentiment soared in January to highest level since 2021 – Spectrum News

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Americans are feeling much more positive about the economy, per a new survey.
Consumer sentiment jumped 13% in January — the highest it’s been since July 2021, according to the University of Michigan Surveys of Consumers. It was the second consecutive month of increasing consumer optimism.
“Consumer views were supported by confidence that inflation has turned a corner and strengthening income expectations,” the Surveys noted.
Since December, consumer sentiment has increased 29% — the largest two-month increase since 1991.
The University of Michigan index is based on five components, all of which rose in January for second consecutive month. Businesses’ short-run economic outlook increased 27% in January, while consumers’ feelings about their current personal finances increased 14%.
The improved sentiment included Americans of all ages, incomes, education levels, political affiliations and regions of the country. Both Democrats and Republicans had their most favorable sentiment about the economy since the summer of 2021.
Consumer sentiment has increased 60% since hitting an all-time low in June 2022 and is now 7% short of the surveys’ historical average.
Consumers expect inflation to be about 2.9% in the coming year — similar to before the pandemic. In the long run, they expect inflation to be about 2.8%.

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