Consumer sentiment increased this month to its highest level since August as households show signs of shaking off the economic dissatisfaction and even outright despair that have gripped the United States in recent months.

Consumer sentiment rose to 56.4 in January, up from 52.9 in December 2025, according to the final reading of the University of Michigan Consumer Sentiment Index. Despite the gains, consumer sentiment is still down 21.3% from a year ago.