UMich Sentiment Slips In Early Jan As Outlook Dips

Despite soaring stocks and a trade deal, University of Michigan Sentiment survey signaled a small decline from 99.3 to 99.1 in preliminary January data (with current conditions improving but the outlook dipping)…

• Current economic conditions index rose to 115.8 vs. 115.5 last month.

• Expectations index fell to 88.3 vs. 88.9 last month.

Source: Bloomberg

Buying Conditions were perceived to have improved for houses and durables but plunged for autos…

Source: Bloomberg

And finally, and perhaps most notably, inflation expectations jumped in January:

• Expected change in median prices during the next year rose to 2.5% vs. 2.3% last month.

• Expected change in median prices during the next 5-10 years rose to 2.5% vs. 2.2% last month.

Source: Bloomberg

Though it remains low trendwise.