Overview
- The University of Michigan’s preliminary January reading rose to 54 from 52.9 in December, marking a second straight monthly gain yet leaving sentiment about 24.7% below a year ago.
- Year-ahead inflation expectations eased to 4.2%, the lowest since January 2025, while long-run expectations ticked up to 3.4%, remaining above the Federal Reserve’s 2% target.
- Survey director Joanne Hsu said households see modest improvement but remain focused on kitchen-table costs and signs of labor-market softening.
- BLS data show December payrolls increased by 50,000 and unemployment was 4.4%, yet revisions left the three-month average at minus 22,000 with private-sector gains near 30,000.
- Coverage cites economists who say tariffs are adding some upward pressure to prices, and polling shows President Trump’s favorability underwater with notable disapproval of his handling of the economy.