10:08 AM EST, 01/24/2025 (MT Newswires) -- The University of Michigan consumer sentiment index was revised downwards on Friday to a reading of 71.1 for January from the 73.2 print in the preliminary estimate, compared with expectations for no revision in a survey compiled by Bloomberg as of 7:40 am ET.

That was below the final reading of 74.0 in December.

"Despite reporting stronger incomes this month, concerns about unemployment rose; about 47% of consumers expect unemployment to rise in the year ahead, the highest since the pandemic recession," Michigan said. "January's data closed on Inauguration Day, and consumers of all political leanings will continue to refine their views as Trump's policies are clarified and implemented."

The current conditions index was revised down to 74.0 from a 77.9 preliminary estimate, below the 75.1 reading in December, while the expectations index was revised down to 69.3 from 70.2. The index was 73.3 in December.

Respondents expected a 3.3% inflation rate over the next year and 3.2% annual inflation over the next five years, up from 2.8% and 3% respectively in December.

The twice-monthly Michigan Sentiment index measures consumer sentiment early in the current month (the preliminary estimate) and is then revised later in the month (the final estimate).

The headline index is a combination of the current assessment and expectations for the near future. An increase in the reading suggests consumers are more confident, a positive for stocks if that confidence translates into spending. Increased demand is usually inflationary, a negative for bonds.