Back to today’s briefing

Story perspectives

U.S. Consumer Sentiment Hits Six-Month Low Amid Inflation Woes

1/25/2025

44 6

Summary

Consumers' Sentiment Declines

U.S. consumer sentiment decreased to 71.1 in January, a decline from 74.0 in December, marking a six-month low.
Rising unemployment and inflation concerns, especially from potential tariffs, are influencing this sentiment drop.
Nearly 47% of consumers anticipate job losses within the next year, the highest since the pandemic.
One-year inflation expectations increased to 3.3%, up from 2.8% in December, reflecting heightened economic anxiety.

Summary

Consumers' Confidence Dips

UK consumer confidence fell five points to -22 in January, signaling economic pessimism.
The general economic situation index decreased to -46, while one-year expectations dropped eight points to -34.
The Savings Index increased nine points to +30, showing a shift towards saving during uncertainty.
Experts caution that this decline could impede government initiatives aimed at boosting economic growth.

History

Historical Context

U.S. consumer sentiment has dropped to a six-month low, echoing historical economic downturns. Similar to the 1970s stagflation, rising unemployment and inflation concerns are reshaping consumer confidence. Past economic crises often stemmed from external shocks, highlighting the cyclical nature of economic anxiety and recovery.

1 of 3

Consumers' Sentiment Declines

U.S. consumer sentiment decreased to 71.1 in January, a decline from 74.0 in December, marking a six-month low.
Rising unemployment and inflation concerns, especially from potential tariffs, are influencing this sentiment drop.
Nearly 47% of consumers anticipate job losses within the next year, the highest since the pandemic.
One-year inflation expectations increased to 3.3%, up from 2.8% in December, reflecting heightened economic anxiety.

1 / 3