Preliminary data from the United States revealed that consumer sentiment fell to 73.20 in January 2025, down from 74.00 in December, falling short of expectations of 73.80.
In a report by Meristem, the decline was driven primarily by a drop in the expectations sub-index, which dropped to 70.20 from 73.30. Despite this, the current conditions gauge showed a slight improvement.
“Preliminary data in the US showed that US consumer sentiment declined to 73.20 in January 2025 from December’s 74.00, missing expectations of 73.80, as the expectations sub-index fell sharply to 70.20 from 73.30, despite a slight improvement in the current conditions gauge.”
According to the report, this sentiment decline reflects a growing concern about future inflation, even as short-term worries about the cost of living eased.
It added that long-term inflation expectations also increased to 3.30 per cent, marking a rise in just one month. The dip in consumer sentiment suggests heightened uncertainty about the inflation trajectory, which could impact consumer spending and economic growth in the near term.
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