United States Consumer Confidence

The University of Michigan consumer sentiment for the US fell to 68.8 in January of 2022, the second lowest level in a decade and below market forecasts of 70, mainly due to the spread of the delta and omicron coronavirus variants and escalating inflation, preliminary estimates showed. Three-quarters of consumers in early January ranked inflation, compared with unemployment, as the more serious problem facing the nation. Also, confidence in government economic policies is at its lowest level since 2014. The economic conditions subindex went down to 73.2 from 74.2 in December and the expectations gauge dropped to 65.9 from 68.3. Meanwhile, inflation expectations increased for both the year ahead (4.9% vs 4.8%) and the next 5 years (3.1% vs 2.9%).