University of Michigan final consumer sentiment rises to 56.4 in January, exceeding expectations

Jan 23, 2026, 3:02:58 PM UTC(11 days ago)

Impact: Medium

Affected Assets

The final January 2026 reading of 56.4 is a significant increase from the preliminary estimate of 54.0 and the December 2025 reading of 52.9.
The Current Economic Conditions Index also saw a notable rise, suggesting consumers feel slightly better about their present financial situation.
Despite the monthly increase, the sentiment index remains deeply depressed, down approximately 25% compared to the reading from January 2025.
The stronger-than-expected final number may reduce pressure on the Federal Reserve to aggressively cut interest rates, as it suggests a slightly more resilient consumer base.
Analysts note that consumers remain primarily focused on "kitchen table issues" such as high prices and a softening labor market, despite the modest improvement in overall sentiment.

*UMICH FINAL JAN. CONSUMER SENTIMENT RISES TO 56.4; EST. 54