Consumer sentiment in the U.S. deteriorated by more than initially estimated in the month of January, according to revised data released by the University of Michigan on Friday.
The report showed the consumer sentiment index for January was downwardly revised to 67.2 from a preliminary reading of 68.8. Economists had expected a more modest downward revision to a reading of 68.7.
With the downward revision, the index was further below the final December reading of 70.6, dropping to its lowest level since hitting 93.7 in November 2011.
“Although their primary concern is rising inflation and falling real incomes, consumers may misinterpret the Fed’s policy moves to slow the economy as part of the problem rather than part of the solution,” said Surveys of Consumers chief economist Richard Curtin.
He added, “The danger is that consumers may overreact to these tiny nudges, especially given the uncertainties about the coronavirus and other heightened geopolitical risks.”
The report showed the index of consumer expectations slid to 64.1 in January from 68.3 in December, while the current economic conditions index fell to 72.0 from 74.2.
On the inflation front, one-year inflation expectations ticked up to 4.9 percent in January from 4.8 percent in December. Five-year inflation expectations also rose to 3.1 percent from 2.9 percent.
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