Keeping you up to date on the latest data releases.
- Consumer Sentiment
The University of Michigan’s Index of Consumer Sentiment was revised up by 1.0 index point to 75, a substantial increase from December’s level of 69.9. Over the past few months, consumer sentiment has shown a marked improvement, rising nearly 20 points from a recent low of 55.8 last August. Both the current conditions and consumer expectations components have contributed to the overall increase. In January, the current conditions component was revised up from 82.6 to 84.2, likely reflecting some reported positive momentum in the labor market. The expectations component, which has risen a little over 20 points since last August, was revised up from 68.4 to 69.1 in January, jumping up from a level of 63.6 in December. Median short-run (one-year ahead) inflation expectations ticked up from 3.1 percent to 3.3 percent in January, likely reflecting a modest increase in gas prices. On the other hand, and perhaps more importantly, longer-term (five-to-ten years ahead) expectations remained at 2.7 percent for the fourth consecutive month, which is somewhat remarkable. The last time longer-run expectations remained unchanged for 4 months was in mid-2003, incidentally also at 2.7 percent.