Consumer Sentiment Drops as Bidenflation Crushes Expectations

U.S. consumer sentiment fell by more than expected in early January as rising prices dominated the pandemic and unemployment as the most serious problem facing the nation.

The University of Michigan’s preliminary consumer sentiment index tumbled to 2.5 percent to 68.8 from 70.6 in December, the second-lowest in a decade. The lowest reading was recorded in November. Analysts had forecast a reading of 70.4, little changed from the prior month.

“Three-quarters of consumers in early January ranked inflation, compared with unemployment, as the more serious problem facing the nation,” said Richard Curtin, the survey’s chief economist.

Americans are more pessimistic about conditions over the next six months than they are about current conditions. The current condition gauge fell 1.3 percent to 73.2. The expectations gauge dropped 3.5 percent to 65.9.