Michigan’s Consumer Sentiment Index<\/a> rose to 54 in January’s preliminary reading from a final reading of 52.9 in December.\u00a0<\/p>\n That was a larger increase than what was expected by economists polled by LSEG, who anticipated the January figure would come in at 53.5. However, January’s reading of 54 was significantly below the 71.7 reading a year ago in January 2025.<\/p>\n “Improvements in January were seen among lower-income consumers, while sentiment fell for those with higher incomes,” Surveys of Consumers Director Joanne Hsu noted.<\/p>\n US ECONOMY ADDED 50K JOBS IN DECEMBER AS UNEMPLOYMENT RATE DECLINES<\/a><\/p>\n The University of Michigan’s consumer sentiment report rose more than expected in the preliminary reading for January. (Robert Nickelsberg\/Getty Images \/ Getty Images)<\/p>\n The report found that year-ahead\u00a0inflation expectations<\/a> were steady at 4.2% to start January, which is the lowest reading since January 2025 but well above that month’s 3.3% inflation expectations.<\/p>\n Ticker Security Last Change Change % WMT<\/a> WALMART INC. 114.53 +1.46 Consumers’ long-run inflation expectations rose slightly from 3.2% in December to 3.4% this month. By comparison, readings ranged between 2.8% and 3.2% in 2024, and were below 2.8% throughout 2019 and 2020.<\/p>\n FURTHER RATE CUTS IN QUESTION AS FED POLICYMAKERS DEEPLY DIVIDED OVER DECEMBER CUT, MINUTES SHOW<\/a><\/p>\n “All told, 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 added.\u00a0<\/p>\n “They continue to be focused primarily on kitchen table issues, like high prices and softening labor markets. Although consumers’ worries about tariffs appear to be gradually receding, they remain guarded about the overall strength of business conditions and labor markets,” she explained.<\/p>\n Hsu noted that over 90% of the surveys for the release were collected before the capture of Venezuelan leader\u00a0Nicol\u00e1s Maduro<\/a> in a U.S. special forces raid on drug and weapons trafficking charges.<\/p>\n US ECONOMY EXPECTED TO GROW FASTER IN 2026 DESPITE STAGNANT JOB MARKET: GOLDMAN SACHS<\/a><\/p>\n The University of Michigan’s consumer sentiment report comes as the Labor Department released the closely-watched\u00a0December jobs report<\/a> showing the U.S. economy added 50,000 jobs last month.<\/p>\n The modest jobs growth closed out a turbulent year for the labor market, which faced headwinds from shifts in\u00a0immigration policies<\/a> under the Trump administration reducing the supply of labor.\u00a0<\/p>\n Businesses also faced elevated uncertainty amid the administration’s\u00a0tariff policies<\/a>, which underwent several changes following the president’s “Liberation Day” tariffs announced in April.<\/p>\n![\"Shoppers](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/01\/Consumers-grocery-store.jpg\")
<\/p>\n
\n +1.29%
\n KR<\/a> THE KROGER CO. 59.51 -0.27
\n -0.45%
\n TGT<\/a> TARGET CORP. 105.52 -0.81
\n -0.76%
\n COST<\/a> COSTCO WHOLESALE CORP. 924.88 +9.57
\n +1.05%<\/p>\n