For a Second Month Consumer Confidence Rises

U.S. consumer sentiment edged higher for the second straight month in the latest January survey by the University of Michigan. A closely watched index reached its highest level since September but reflected lingering concerns about inflation and employment.

Based on several metrics and subject to revision later this month, preliminary numbers showed sentiment posting at 54 for January, up slightly from December’s 52.9 but well below the 71.7 reading for January 2025. Numbers generally reflect the percentage of respondents with positive views of their household finances and the larger economy.

Joanne Hsu, the university’s consumer surveys director, said respondents perceived modest improvement in the economy over the past two months, though they remained concerned about high prices and slowed hiring.

“Although consumers’ worries about tariffs appear to be gradually receding, they remain guarded about the overall strength of business conditions and labor markets,” Hsu said in a statement.