Keeping you up to date on the latest data releases.
- Consumer Sentiment
The University of Michigan’s Index of Consumer Sentiment was revised up in late January—from an index level of 71.3 to 73.8—and is now a little above December’s level of 72.9, but still well off its recent cyclical high of 82.7 set last November. The bulk of the upward revision to Sentiment came from the consumers’ expectations component, which was revised up from 62.7 to 66.6 in late January, an improvement over December’s 63.8 level. Respondents’ assessments of the current conditions were roughly unchanged at 84.8, 2.2 points below December’s level. While the release neglected to note where the impetus for the upward revision came from, it did note the continued dichotomy between households with incomes above and below $75,000, with the upper income respondents becoming more optimistic and the lower income households becoming more pessimistic. The median respondent’s expectation for inflation over the year ahead was revised down 0.1 percentage point to 3.3 percent in late January, but that’s still a tenth above December’s response. Longer-term (5- to 10-year) ahead expectations remained at 2.9 percent in January and unchanged from the previous month.