US consumer sentiment improves more than expected in January

(Sharecast News) - US consumer sentiment improved more than expected in January, according to a preliminary survey released on Friday. The University of Michigan's index of consumer sentiment rose to 54.0 from 52.9 in December 2025, but was down from 71.7 in January 2025. Economists were expecting a reading of 53.5.

The index for current economic conditions increased to 52.4 in January from 50.4 the month before, but was below January 2025's reading of 75.1.

Finally, the index of consumer expectations ticked up to 55.0 this month from 54.6 a month earlier, but was down from a readinf of 69.5 last January. .

Surveys of consumers director Joanne Hsu said: "Consumer sentiment inched up for the second straight month and reached its highest reading since September 2025. Improvements in January were seen among lower-income consumers, while sentiment fell for those with higher incomes.

"All told, while consumers perceived some modest improvement in the economy over the past two months, their sentiment remains nearly 25% below last January's reading. They continue to be focused primarily on kitchen table issues, like high prices and softening labor markets. Although consumers' worries about tariffs appear to be gradually receding, they remain guarded about the overall strength of business conditions and labor markets. Note that more than 90% of interviews for this release were collected prior to the capture of Maduro in Venezuela."