#USConsumerConfidence

In January 2025, U.S. consumer confidence experienced a decline for the first time in six months. The University of Michigan's Consumer Sentiment Index dropped to 71.1 from December's 74.0. Concerns about the labor market, inflation, and potential price increases due to proposed tariffs have contributed to this downturn.

Key details include:

Short-term Inflation Expectations: Increased to 3.3% from December's 2.8%, the highest since May 2024.

Long-term Inflation Expectations: Rose to 3.2% from 3.0% in December.

Additionally, the Conference Board reported a decline in its Consumer Confidence Index in December 2024, dropping from 112.8 in November to 104.7, reflecting growing consumer unease about economic conditions.

These indicators suggest consumers are becoming more cautious about spending and the economic outlook.