Keeping you up to date on the latest data releases.
- Consumer Sentiment
The University of Michigan’s Index of Consumer Sentiment slipped from an index value of 74.5 December to 72.7 in January, but remained just above its 2010 average level of 72.0. The decline came as the current conditions component fell from 85.3 to 79.8 in January, while the consumer expectations component continued to improve, rising 0.7 point to 68.2 (its highest level since June 2010). The release noted that January’s decline was, in large part, tied to increasing gas prices, as most respondents do not expect increases in their income, though they pushed up their near-term inflation expectations. One-year-ahead average inflation expectations ticked up 0.1 percentage point to 4.0 percent in January, while the median expectation jumped up 0.3 percentage point to 3.3 percent. That said, longer-term expectations remained anchored; with average expectations at 3.2 percent and the median expectation remaining at 2.8 percent.