The final reading on January US consumer sentiment • Prelim was 64.6 • Prior was 59.7 • Current conditions 68.4 vs 68.6 prelim • Expectations 62.7 vs 62.0 prelim • 1-year inflation 3.9% vs 4.0% prelim (4.4% prior) • 5-10 year inflation 2.9 % vs 3.0% prelim (2.9% prior) These inflation numbers will be welcomed by the Fed and the market. We've seen a few times where the final numbers are revised lower from the prelim and I wonder if there's some kind of sampling error there. (full story)

The most important aspect of the University of Michigan sentiment survey continues to be the inflation expectations and it plunged to 3.90% (for the next year) - the lowest since April 2021. Consumer sentiment confirmed the preliminary January reading, remaining low from a historical perspective but continuing to lift for the second consecutive month, rising 9% above December and reaching about 3% below a year ago. While the short-run economic outlook was relatively unchanged from last month, all other components of the index increased in January. The current conditions index soared 15% above December, with improving ... (full story)