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    Home » Consumer Sentiment Still in Historic Lows Due to COVID-19, Inflation Concerns
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    Consumer Sentiment Still in Historic Lows Due to COVID-19, Inflation Concerns

    January 14, 20221 Min Read
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    Consumer sentiment declined in January, weighed down by the impact of the Delta and Omicron variants of COVID-19.

    • The Index of Consumer Sentiment stood at 68.8, down 2.5% from 70.6 in December 2020 and 12.9% lower than January 2020’s 79.0. This is the second-lowest level in a decade, only after November’s 67.4.
    • The decline was attributed to the impact of the Delta and Omicron variants of the COVID-19 pandemic, along with issues involving the uptrend of inflation and concerns regarding unemployment.
    • The Current Economic Conditions indicator stood at 73.2, down 15.6% from 86.7 the January 2020’s 86.7 and 1.3% from December’s 74.2. The Index of Consumer Expectations stood at 65.9, down 10.9% from the previous year’s 74.0 and 3.5% from December’s 68.3.

    Twice as many bottom-third incomes as in the top-third incomes recorded worsening finances during the month, due mainly to inflation.

    Source: University of Michigan

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