The University of Michigan's January 2026 survey reports U.S. consumer sentiment at 56.4, marking a 6.6% increase from the previous month but a 21.3% decline year-over-year. The current conditions index improved to 55.4, while the expectations index climbed to 57.0. Notably, one-year inflation expectations dropped to 4.0%, the lowest since January 2025, whereas long-term inflation expectations slightly increased to 3.3%.