University of Michigan sentiment final for January 71.1 versus 73.2 estimate

On By Littum

  • Previous month 74.0
  • Univ Michigan sentiment 71.1 versus 73.2 estimate. The weakest level since October last year
  • Current ratio 74.0 versus 77.9 provisional and 75.1 previous month. Weakest since last November
  • Expectations 69.3 versus 70.2 points for the time being and 73.3 last month. Weakest since July last year
  • 1 year inflation 3.3% against 3.3% provisionally and 2.8% last month. Highest since November 2023
  • 5 year inflation 3.2% versus 3.3% provisional and 3.0% month

The table above shows the change from year to year for the survey results. The atmosphere is lower. Much may have been politically motivated. The interesting thing has fallen after the election results.

The figure below shows the inflation expectations.

Ironically, those who see higher tariffs as better for the economy also see higher tariffs leading to lower inflation, while those who believe lower tariffs are better for the economy expect higher inflation.

Most economists expect higher tears to lead to higher inflation and vice versa.