The University of Michigan’s consumer sentiment gauge surged in January to 78.8, the highest since July 2021, from 69.7 in December.
It’s a new year, and Americans are feeling better about the trajectory of the economy.
The University of Michigan’s consumer sentiment gauge jumped to 78.8 in January, the highest mark since July 2021. That’s up from 69.7 in the prior month, and 64.9 one year ago.
That follows December’s surge of more than 8 points, and the two-month increase was the largest since 1991.
The latest boost in confidence comes amid strengthening income expectations as well as an improving inflation outlook. Meanwhile, both Democrats and Republicans expressed more optimism too.
„The improvement was widespread, as consumer views on current economic conditions and expectations for the future both improved notably during the month,“ said Sam Millette, director of fixed income for Commonwealth Financial Network.
