ICYMI: Consumer Sentiment Is Surging, Inflation Is Falling, and the Economy Is Growing

In the latest sign that President Biden's economic plan is delivering results that more and more Americans are feeling, preliminary data from the University of Michigan's Survey of Consumers today showed that consumer sentiment soared by 13% in January, jumping to its highest level in more than two years. Overall, sentiment has climbed by 29% during the past two months—the biggest two-month jump in more than 30 years. At the same time, inflation expectations continued to fall in January, dropping to their lowest levels since 2020. This comes at a moment when our economy has added 14.3 million new jobs, the unemployment rate has remained below 4% for the longest stretch in 50 years, inflation has fallen nearly two-thirds from its peak, and wages and wealth are above their pre-pandemic levels.

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CNBC: Consumer sentiment surges while inflation outlook dips, University of Michigan survey shows
[Jeff Cox, 1/19/24]

Consumers have grown more confident about the direction of the economy and inflation at onset of 2024, despite persistent worries about a looming slowdown, a survey released Friday showed.

The University of Michigan's Consumer Survey of Consumers showed a reading of 78.8 for January, its highest level since July 2021 and up 21.4% from a year ago.

Wall Street Journal: Americans Are Suddenly Upbeat About Economy. Sentiment Just Logged Its Biggest Jump in Decades.
[Gwynn Guilford and Amara Omeokwe, 1/19/24]

Americans are rapidly becoming much more upbeat about the economy.

Consumer sentiment leapt 13% in the first half of January from December, the University of Michigan said Friday. That came on the heels of a sharp rise in December, causing the index to surge a combined 29% from November, the biggest two-month increase since 1991. The pickup in sentiment was broad-based, spanning consumers of different age, income, education and geography.

The recovery in sentiment "is likely to provide some positive momentum for the economy," said Joanne Hsu, the Michigan survey's director.

Axios: America's economic mood is improving fast, survey shows
[Matt Phillips, 1/19/24]

In the last couple months, Americans' sour sentiment has grown a lot sunnier.

Why it matters: Since the pandemic, U.S. consumers have consistently reported depressed economic sentiment, despite that fact that America's economy has staged a better recovery from COVID than the rest of the world's rich nations have.

State of play: Starting two months ago, America's mood started heading back up.

Bloomberg: US Consumer Sentiment Jumps, Price Outlook Hits Three-Year Low
[Vince Golle, 1/19/24]

US consumer sentiment soared in early January to the highest since 2021, far exceeding expectations, as short-term inflation expectations slipped to a three-year low.

The University of Michigan's consumer sentiment index rose 9.1 points to 78.8, the biggest monthly advance since 2005. The preliminary January reading surpassed all estimates in a Bloomberg survey of economists.

Reuters: US consumer sentiment rises solidly in January
[1/19/24]

U.S. consumer sentiment improved in January to the highest level since the summer of 2021 amid optimism over the outlook for inflation and household incomes, a survey showed on Friday.

The University of Michigan's preliminary reading on the overall index of consumer sentiment came in at 78.8 this month, the highest reading since July 2021, compared to 69.7 in December. Economists polled by Reuters had forecast a preliminary reading of 70.0.

MarketWatch: Consumer sentiment jumps to highest level since July 2021
[Jeffry Bartash, 1/29/24]

The numbers: Consumer sentiment jumped in January to the highest level since the summer of 2021, reflecting fresh optimism about the economy as inflation slows and incomes rise.

The preliminary reading of the sentiment survey shot up to 78.8 from 69.7 in December, the University of Michigan said Friday. Two straight strong increases pushed the index to its highest level since July 2021.

Yahoo! Finance: Consumers haven't felt this good about the economy since 2021: 'December was no fluke'
[Josh Schafer, 1/19/24]

Americans are feeling increasingly better about the state of the US economy.

The latest University of Michigan consumer sentiment survey released Friday revealed a 13% jump in overall sentiment during the month of January. The index reading for the month came in at 78.8, its highest mark since July 2021, and well above economist expectations for a reading of 70.1.

The cumulative 29% climb in the sentiment index over the past two months is the largest two-month increase since the US economy recovered from recession in 1991.

The Hill: Consumer sentiment hits highest level since 2021
[Taylor Giorno, 1/19/24]

Consumer sentiment rose in January to its highest level since July 2021, according to the University of Michigan Survey of Consumers released Friday.

Preliminary readings showed sentiment jumped to 78.8 from 69.7 percent last month, marking the second straight month of strong increases.