U.S. Consumer Sentiment Grows in January 2026
Summary
- U.S. consumer sentiment increased in January, with the index revised up to 56.4 from December’s 52.9.
- Inflation expectations eased, with consumers expecting 4% price increases over the next year.
- Consumer spending remains resilient, but weakening fundamentals may slow consumption ahead.
Consumer sentiment in the United States continued to improve in January, despite the sentiment being 21% below a year ago.
The University of Michigan on Friday released data showing consumer sentiment in the U.S. has greatly increased more than what was anticipated to occur in January 2026.
The University stated that its consumer sentiment index for January was upwardly revised to 56.4 from a preliminary reading of 54.0. The index was at 52.9 in December, and economists had predicted the index would be unrevised from the preliminary estimate.
According to data released on Friday, consumers anticipate price increases of 4% annually over the next year, which is the lowest since January 2025. Consumers’ expectations for inflation over the next five years dipped to 3.3% from a preliminary estimate of 3.4%. Long-term inflation expectations edged up from 3.2% last month.
This confidence is a crucial indication for Federal Reserve policymakers, who are concerned that long-standing anxieties about price increases may affect wage-setting and spending decisions, potentially causing inflation to spiral out of control.
Consumer spending has persisted despite general discontent
This spending resilience indicates that although households are under stress, they have not yet made a significant cutback.
This article was originally published as U.S. Consumer Sentiment Grows in January 2026 on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.
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