Consumer sentiment fell for the first time in six months, according to the final January reading for the Michigan Consumer Sentiment Index, which came in at 71.1. The index fell 2.9 points (-3.9%) from December’s final reading of 74.0 and was down 10.0% from a year ago. The latest reading was lower than the 73.2 estimate. The Michigan Consumer Sentiment Index is a monthly survey of U.S. consumers’ confidence in the economy, personal finances, business conditions, and buying conditions, conducted by the University of Michigan. There are two reports released each month; a preliminary report released mid-month and a final report released at the end of the month. Joanne Hsu, survey director, provided the following comments: Consumer sentiment fell for the first time in six months, down 4% from December. While personal finance assessments edged up for the fifth straight month, all other components of the index declined. Indeed, the decline in sentiment was broad-based and was seen across income, wealth, and age groups. Durable goods purchasing conditions eased but remained about 30% better than six months ago amid the continued view that buying now will offset future price increases. Despite stronger earnings reports this month, concerns about unemployment are rising; about 47% of consumers expect unemployment to rise in the coming year, the highest since the pandemic recession.
