The Consumer Sentiment Index in the United States declined by 1.1% in January compared to the month before, to stand at 73.2, a preliminary report by the University of Michigan showed on Friday. On an annual level, the figure plunged by 7.3%.
The Current Economic Conditions Index jumped 3.7% in the reported month compared to December but dropped 4.9% compared to January 2024, amounting to 77.9 points. The Index of Consumer Expectations fell by 4.2% on a monthly basis and 8.9% on an annual basis, coming in at 70.2.
"Year-ahead inflation expectations soared from 2.8% last month to 3.3% this month. The current reading is the highest since May 2024 and is above the 2.3-3.0% range seen in the two years prior to the pandemic. Long-run inflation expectations rose from 3.0% last month to 3.3% this month. This is only the third time in the last four years that long-run expectations have exhibited such a large one-month change," it was specified in the report.
