Consumers are feeling much be🔴tter about inflation and the economy t♒han they did just two months ago, as a leading consumer confidence survey surged higher again in January.

The University of Michig🎃an Index of Consumer Sentiment surged to 78.8 in its preliminary January reading, jumping 13% from December and reinforcing 澳洲幸运5官方开奖结果体彩网:last month’s sharp increase. After hitting an all-time low in June 2022, sentiment has risen nearly 60% and is now just 7% lower than the historical average. Analysts had forecast the index to come in flat at 69.7.

“Consumer views were supported by confi꧙dence that inflation has turned a corner and strengthening income expectations,” said Joanne Hsu, director of the consumer survey.

The survey has not pr🎃oduced a 2💫9% cumulative rise in sentiment over two months since 1991, Hsu said.

Consumer In🐓flation Expectations at Lowest Level Since 2020

Expectations for inflation lowered again in January, with consumers anticipating inflation at 2.9% for the year ahead. Only two months ago consumers were 澳洲幸运5官方开奖结果体彩网:anticipating inflation of 4.4 %. It’s the lowest inflat𒅌ion expectations have been since December 2020.&n♑bsp;

Inflation has been trending downward, and the release next week of the 澳洲幸运5官方开奖结果体彩网:personal consumpt💮ion expenditures (PCE) price index will show whether the Federal Reserve’s preferred inflation measurement will continue to move lower after 澳洲幸运5官方开奖结果体彩网:coming in at 2.6% last month. 

"The powerful surge shows Americans are feeling the effects of lower inflation. That’s transmitted directly through prices at the pump, which have been falling since September, and less directly given wage increases have risen above the rate of inflation,” said Robert Frick, Navy Federal Credit Union corporate economist.

Consumers also had better feelings about the economy, with the index of current economic conditions jumping 10 points from last month to reach 83.3 and the index of consumer expectations moving higher as well.