Consumer sentiment in the U.S. unexpectedly deteriorated in the month of January, according to a report released by Thomson Reuters and the University of Michigan on Friday.
The report said the consumer sentiment index fell to 80.4 in January from 82.5 in December. The drop came as a surprise to economists, who had expected the index to climb to 83.5.
Reuters said the decrease by the consumer sentiment index reflected lowered expectations among lower- and middle-income families.
Meanwhile, Rob Carnell, chief international economist at ING, said, "With the labor market probably in far better shape than the latest labor report suggested, the stock market remaining robust, house prices rising strongly and gasoline prices relatively low, there is no good reason for the dip."
"At any rate, 80.4 is not a bad level, and consistent with spending growth remaining at the sort of levels seen in recent quarters," he added.
The unexpected decrease by the headline index came as the barometer of current economic conditions dropped to 95.2 in January from 98.6 in December. The gauge of consumer expectations also dipped to 70.9 from 72.1.
On the inflation front, one-year inflation expectations were unchanged at 3.0 percent, while the five-to-ten-year inflation outlook rose to 2.9 percent from 2.7 percent.
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April 24, 2026 15:15 ET Economics news flow was relatively light this week even as the conflict in the Middle East continued, raising concerns for policymakers. In the U.S., spending data, initial jobless claims and pending home sales were the highlights. Business confidence in the biggest euro area economy was in focus in Europe. Inflation data from Japan gained attention in Asia.