Univ. of Michigan Sentiment final for January 79.0 vs 78.8 preliminary. Last month 69.7.

<ul><li><a href="https://youtu.be/eqzLuZyeVdo" target="_blank" rel="nofollow">Preliminary </a>78.8. <a href="https://www.forexlive.com/news/us-december-umich-consumer-sentiment-694-vs-620-expected-20231208/" target="_blank" rel="follow">Prior </a>month (December) 69.7.</li><li>Univ of Michigan sentiment 79.0 vs 78.8 preliminary Highest level since July 2021</li><li>Current conditions 81.9 vs 83.3 preliminary and 73.3 prior</li><li>Expectations 77.1 vs 75.9 preliminary and 66.4 prior</li><li>1 year inflation expectations of 2.9% versus a 2.9% preliminary 3.1% prior month</li><li>5-year inflation expectations 2.9% versus 2.8% preliminary and 2.9% prior month</li></ul><p>There has been little reaction to the data. The inflation expectations remained fairly steady. Current conditions lower vs preliminary. Expectations moved higher. </p><p>Highlights direct from the Univ. of Michigan:</p><ul><li>Consumer sentiment surged 13% to its highest level since July 2021, indicating improved outlooks for inflation and personal incomes.</li><li>This increase in consumer sentiment in January is notable, having been exceeded only five times since 1978, with a remarkable 14% increase observed in the previous month.</li><li>Consumers reported positive views on their personal finances and the macroeconomy, with the short-run business outlook jumping 27%.</li><li>After initial skepticism last fall, consumers now feel confident that inflation will continue to soften, resuming the upward sentiment trajectory from the all-time low in June 2022.</li><li>Despite the overall optimism, there remains significant disagreement about the economy's future, with 41% anticipating good times ahead for business conditions and 48% expecting bad times.</li><li>The current sentiment is 7% below the historical average since 1978, yet it shows vast improvement from June 2022 when 79% expected challenging times.</li><li>Year-ahead inflation expectations decreased to 2.9%, the lowest since December 2020, and within the pre-pandemic range of 2.3-3.0%.</li><li>Long-run inflation expectations remained steady at 2.9%, within the narrow range of 2.9-3.1% observed for 27 of the last 30 months, but slightly higher than the pre-pandemic range of 2.2-2.6%.</li></ul>

This article was written by Greg Michalowski at www.forexlive.com.