Americans are feeling much better about the economy thanks to slowing inflation

Washington, DC (CNN) — Americans’ attitudes on the economy are improving substantially as inflation slows.

Posted 3:06 p.m. Jan 19 — Updated 3:06 p.m. Jan 19

Bryan Mena

, CNN

CNN — Washington, DC (CNN) — Americans’ attitudes on the economy are improving substantially as inflation slows.

The University of Michigan’s latest consumer survey showed that consumer sentiment improved this month, soaring 13% from December, according to a preliminary reading released Friday. Sentiment reached its highest level since July 2021.

“Consumer views were supported by confidence that inflation has turned a corner and strengthening income expectations,” Joanne Hsu, the university’s surveys of consumers director, said in a release. “Over the last two months, sentiment has climbed a cumulative 29%, the largest two-month increase since 1991 as a recession ended.”

Inflation eased substantially throughout 2023 without a sharp rise in unemployment, which has helped perk up sentiment among US consumers in recent months. Still, it remains to be seen whether inflation could drift all the way to the Federal Reserve’s 2% target without interest rates staying higher for longer or triggering massive job losses.

This story is developing and will be updated.

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