The University of Michigan reported a rise in U.S. consumer sentiment for January 2026, with the index revised to 56.4 from December's 52.9. This increase surpasses the preliminary estimate of 54.0, despite being 21% lower than a year ago. Inflation expectations have eased, with consumers anticipating a 4% price increase over the next year, the lowest since January 2025. Consumer spending remains robust, although weakening fundamentals may slow future consumption. The sentiment improvement was broad-based across demographics, but pressures from high prices and a weakening labor market persist. Long-term inflation expectations slightly increased to 3.3% from last month's 3.2%.