Econintersect: The University of Michigan Consumer Sentiment Index final report for January came in at 74.2, an improvement from the interim 72.7 but a slight decline from the 74.5 of the final report for December. The January number, however, was higher than the Briefing.com the consensus expectation of 73.2.Richard Curtin, chief economist for the Michigan survey, suggests in the press release that inflationary expectations could put a damper on consumer sentiment going forward.
The Michigan survey,and others from the Conference Board and the NFIB (National Association of Independent Business), although up from 2009 lows, remain at levels seen at the bottoms of previous recessions. A quote from Doug Short (dshort.com), writing at GEI Analysis:
For consumers and small businesses this remains The Great Recession.