Headline UMich sentiment data beat expectations in January, back near its highest since Jan 2004 as expectations improved but current situation dipped...
Democrats have started to accept the economic improvements...
The resilience of consumers is remarkable and due to record low unemployment, record gains in income and wealth, as well as near record lows in inflation and interest rates. Gains in personal finances were reported by 53% of all consumers in January, exactly equal to the 2018 and 2019 averages--the highest two years in the past half century.
Combined net changes in household income and wealth were cited in 40% of all mentions in January, comparable to the 1966 and 2000 peaks.
Buying conditions for major discretionary purchases showed mixed changes in January.
Home buying attitudes improved to the best level in the past year, mainly due to references to lower mortgage rates; home selling conditions were judged slightly less favorably, largely due to lower selling prices.
Vehicle buying conditions, in contrast, slipped in January from last month’s 2019 peak, but still remained more favorable than last January.
The Michigan measure of sentiment follows Bloomberg's weekly consumer comfort index, which has climbed to a 20- year high.