The UMich Index of Consumer Sentiment final reading fell -3.9% MoM to 71.1 in January. The Current Economic Conditions index fell -1.5% MoM to 74.0, and the Index of Consumer Expectations fell -5.5% MoM to 69.3.

The final report confirms the rise in inflation expectations: year ahead inflation expectations were 3.3% (vs 2.8% in Dec) and 5-year ahead inflation expectations were 3.2% (vs 3.0% in Dec). The survey found a stark difference in price expectations based on how consumers viewed tariffs’ potential economic impact.