U.S. consumer sentiment perked up in early January, but households continued to worry about inflation and a weakening labour market, a survey showed on Friday.
The University of Michigan’s Surveys of Consumers said its Consumer Sentiment Index increased to 54.0 this month from a final reading of 52.9 in December. Economists polled by Reuters had forecast the index rising to 53.5.
“Although consumers’ worries about tariffs appear to be gradually receding, they remain guarded about the overall strength of business conditions and labor markets,” Joanne Hsu, the director of the Surveys of Consumers, said in a statement. “They continue to be focused primarily on kitchen table issues, like high prices and softening labor markets.”
The survey’s measure of consumer expectations for inflation over the next year was unchanged at 4.2% this month. Consumers’ expectations for inflation over the next five years increased to 3.4% from 3.2% last month.