Consumer Sentiment fell in January to 79.0 according to the University of Michigan Consumer Sentiment Index. January’s figure is 20.8 points below the January 2019 index. The Current Economic Conditions Index declined 3.7 points from the previous month to 86.7, and the reading is 24.2 points below the January 2019 index. The Consumer Expectations Index decreased 0.8 points to 74.0 and is 18.2 points lower than a year ago.
“The overall level of the Sentiment Index has shown only relatively small variations since the pandemic started (…) Consumer confidence has benefitted from wearing masks and social distancing, the quick substitution of home for office work, and the prompt distribution of generous federal benefits. These factors helped to absorb the pandemic’s negative impact on the economy as well as on personal finances. Although the nation is still being ravished by the pandemic, and the nation’s cooperative reactions have been far from perfect, consumers have helped to dissipate the potential for further harm.” said Richard Curtin, chief economist of UM Surveys of Consumers.
Read the University of Michigan Surveys of Consumers release.