Recent data indicates a decline in U.S. consumer sentiment for January 2025. The University of Michigan's Consumer Sentiment Index decreased to 71.1 from December's 74.0, marking the first decline in six months. This downturn is attributed to concerns about the labor market and potential price increases stemming from proposed tariffs on imports.
Additionally, one-year inflation expectations have risen to 3.3% from December's 2.8%, surpassing the pre-pandemic range of 2.3%-3.0%. This increase is linked to anticipated tariff policies.
In contrast, the Ipsos Global Consumer Confidence Index for January 2025 reports an increase in sentiment in Latin America and Europe, while noting a decline in North America.