#macro University of Michigan Consumer Sentiment is near historic lows. The index just hit its 2nd lowest level in history.
02 Jan 2026, 16:13
🇺🇸⚠️ #macro University of Michigan Consumer Sentiment is near historic lows.
The index just hit its 2nd lowest level in history. This survey measures how U.S. consumers feel about:
• Personal finances
• Inflation
• Future economic conditions
It’s a leading indicator for consumer spending. When sentiment is this low, it usually means:
• Consumers are under financial stress
• Inflation expectations remain elevated
• Confidence in the economic outlook is deeply damaged
• Spending tends to slow down next
Historically, such extreme pessimism appears during:
• Recessions or pre-recession phases
• High inflation / tightening cycles
• Periods of elevated macro uncertainty
Consumers drive ~70% of the U.S. economy. When confidence collapses, growth risk rises sharply. Macro conditions remain fragile.