US consumer sentiment improved modestly in January, with the University of Michigan index rising from 52.9 to 54.0, its highest level since September. Current Economic Conditions Index climbed from 50.4 to 52.4, while the Expectations Index ticked up from 54.6 to 55.0.
The survey noted that concerns about tariffs are gradually easing, though respondents remain guarded about the broader strength of business conditions and the labor market.
On inflation, year-ahead expectations held steady at 4.2%, the lowest reading since January 2025. Longer-run expectations edged up slightly from 3.2% to 3.4%, but remain well below last year’s peaks.
