In January 2025, U.S. consumer sentiment fell to 71.1 from 74.0 in December, driven by labor market concerns and potential tariff-related price hikes. Inflation expectations rose to 3.3%, and nearly 47% of consumers anticipated higher unemployment.
After peaking in November 2024, confidence declined in December, with consumers entering 2025 cautiously, focusing holiday spending on discounts amid financial concerns.
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