Latest data shows a slight rebound in US consumer confidence. The University of Michigan's latest survey indicates that the preliminary January 2026 Consumer Confidence Index has rebounded to 54.0, reaching a new high since September 2025. However, the story behind this number is more complex — year-over-year, consumer confidence still declined by about 25%, a significant drop.

Interestingly, this rebound is not entirely positive. Data shows that the improvement mainly comes from confidence recovery among low-income groups, while confidence among high-income groups is weakening, reflecting a divergence in confidence levels among current consumer groups. Overall, consumers are still struggling under the dual pressures of high prices and slowing employment.

Regarding inflation expectations, the one-year inflation outlook remains unchanged at 4.2%, but long-term inflation expectations have slightly increased to 3.4%. Together, these data suggest that market concerns about medium-term inflation have increased.