economy
January 23, 2026
Consumer sentiment hits highest level in months in sign deep gloom is receding
Consumer sentiment increased this month to its highest level since August as households show signs of shaking off the economic dissatisfaction and even outright despair that have gripped the United States in recent months.
TL;DR
- Consumer sentiment rose to 56.4 in January, up from 52.9 in December 2025.
- This is the highest level of consumer sentiment recorded since August.
- Sentiment is still down 21.3% compared to the previous year.
- The index has risen for two consecutive months, showing a positive trend.
- Improvements were observed across all components of the index and among various demographics.
- Year-ahead inflation expectations fell to 4%, the lowest since January 2025, but still above the Fed's target.
- Long-run inflation expectations slightly increased to 3.3%.
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