U.S. Consumer Sentiment Soars as Economy Shows Signs of Improvement

Despite political polarization, Americans express optimism as unemployment claims fall and price growth slows.

Consumer sentiment in the U.S. has jumped 13% in January, reaching its highest level since July 2021, according to the University of Michigan survey.
The New York Federal Reserve's survey shows that households' perceptions of their current financial situations have improved, with fewer respondents reporting being worse off than a year ago.
Despite political polarization, both Democrats and Republicans have expressed their most favorable economic readings since the summer of 2021.
The Department of Labor reported that weekly initial unemployment claims had fallen to 187,000 — the lowest level since September 2022, and the unemployment rate is at pre-pandemic levels.
The Bureau of Labor Statistics reported that price growth continues to slow, and consumers expect the trend to continue.