Consumer Sentiment Inches Up in January

The sentiment index remains 21% below year-ago level. Nearly three-quarters of consumers say it’s a bad time to buy a vehicle.

Consumer sentiment rose 3.5 points in January to 56.4, up from 52.9 in December but remaining more than 20% below the January 2025 reading of 71.7, according to the University of Michigan Surveys of Consumers.

Consumer sentiment is considered a leading indicator of economic activity. Sentiment levels can also impact consumer’s willingness to make large purchases such as automobiles.

The modest improvement was broad-based across income levels, education levels, age groups and political affiliations, though views on the economy