Recovery of consumer sentiment in the USA: inflation expectation index has reached a minimum, indicating a potential shift towards increased optimism among consumers as economic outlooks improve.

PoolJumper · 2026-01-30T19:03:51+00:00

Recent data from the University of Michigan highlights positive shifts in the U.S. economy, marked by a significant drop in consumer inflation expectations and increased economic optimism. The consumer sentiment index rose to 56.4 in January 2026, with a notable improvement in perceptions of current economic conditions and a bullish outlook for the near future.

PoolJumper

2026-01-30 19:03:51

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Fresh data from the University of Michigan signals positive shifts in the American economy. According to the study, the inflation expectation index in consumer forecasts has reached its lowest level in recent years, indicating a change in public perception of price pressures. This trend is accompanied by a simultaneous increase in overall optimism regarding the country’s economic situation.

Rebound of Key Economic Indicators

In January 2026, the sentiment index improved to 56.4 points. This reflects a steady increase of 6.6% compared to December figures, although it remains 21.3% lower than the same period last year. Notably, the current conditions index rose to 55.4, demonstrating an improved perception among citizens of the existing economic situation.

At the same time, the expectations index reached 57.0 points, indicating a more optimistic outlook among consumers for the coming months. This divergence between current and forecasted indicators suggests market confidence in further economic recovery.

Inflation Expectations Hit Record Low

The most significant metric was the decline in the annual inflation expectation index to 4.0%, the lowest level in many years. This indicates a substantial reassessment by consumers of price forecasts. Such a decrease in pressure on expectations allows households to plan expenditures with greater confidence.

The comprehensive data picture suggests that the sharp fall in the inflation expectation index in consumer perception creates favorable conditions for spending recovery and economic growth. It remains to be seen whether this positive trend will be sustained in upcoming reports.

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