Friday, January 30, 2015

Consumer Sentiment Highest in a Decade

According to the University of Michigan Consumer Sentiment Index, consumer sentiment rose to 98.1 in January, up 4.5 points from the previous month, the highest reading in a decade. The Index is up 16.9 points from January 2014.

The improvement to future expectations index led the increase, increasing 4.6 points to 91.0, followed closely by the index for present conditions, which increased 4.5 points to 109.3. The survey notes that gains in the past six months were as large among households with income under $75,000 as over that amount.

Inflation expectations were mixed. Respondents expect inflation over the next year to be 2.4%, down 0.4 percentage points from the previous month’s survey, and over the next 5 years to be 2.8%, consistent with the previous month.

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