#USConsumerConfidence #USConsumerConfidence

In January 2025, U.S. consumer sentiment saw its first decline in six months, reflecting growing concerns about the labor market and potential price increases due to proposed tariffs. The University of Michigan’s Consumer Sentiment Index fell to 71.1 from 74.0 in December.

The decline was broad-based, affecting a variety of income, wealth, and age groups. Notably, 47% of consumers expect unemployment to rise in the coming year, the highest since the COVID-19 recession. Additionally, one-year inflation expectations rose to 3.3% from 2.8% in December, surpassing the pre-pandemic range of 2.3%-3.0%. Longer-term inflation expectations also increased to 3.2% from 3.0% in December.