Improved Inflation Views Lift US Sentiment to Highest Since 2021
- Short-term inflation outlook fell to 2.9% in early January
- University of Michigan sentiment index rose 9.1 points to 78.8
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US consumers rang in the new year with a good dose of optimism about the economy, their incomes and the inflation outlook, driving a gauge of confidence to a more than two-year high.
The University of Michigan’s consumer sentiment index rose 9.1 points, the biggest monthly advance since 2005, to 78.8. The preliminary January reading stands at the highest level since July 2021, far surpassing the most optimistic estimate in a Bloomberg survey of economists.