US: Consumer Sentiment Index eases to 94.4 from 95.9 in January

Eren Sengezer FXStreet

The Survey of Consumer Survey released by the University of Michigan on Friday showed that the headline Consumer Sentiment Index dropped to 94.4 (preliminary) in January from 95.9 in December.

Key highlights

While the preliminary January reading for the Sentiment Index was largely unchanged from last month (-1.5%), consumers evaluated current economic conditions less favorably (-4.6%).

This small decrease in current conditions produced a small overall decline.

The Expectations Index remained virtually unchanged at 84.8.

Tax reform was spontaneously mentioned by 34% of all respondents; 70% of those who mentioned tax reform thought the impact would be positive, and 18% said it would be negative.

Near and long term gas price expectations inched upward in early January but remained significantly below their peak.

While long term inflation expectation remained at its 2017 average level and short term inflation expectation inched upward, consumers continued to remain very optimistic about the low national unemployment rate.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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