A report from the University of Michigan revealed on Friday the preliminary reading for the Reuters/Michigan index of consumer sentiment decreased 1.9 percent m-o-m to 79.2 in early January. 

Economists had expected the index would drop to 80.0 this month from December’s final reading of 80.7.

According to the report, the index of current U.S. economic conditions fell 2.6 percent m-o-m to 87.7 in January from 90.0 in the previous month. Meanwhile, the index of consumer expectations dropped 1.1 percent m-o-m to 73.8 this month from 74.6 in December.

“Consumer sentiment posted trivial declines in early January despite the horrendous rise in covid-19 deaths, the insurrection, and the impeachment of Trump”, noted Surveys of Consumers chief economist, Richard Curtin. Two offsetting shifts helped narrow the January loss in sentiment: the covid-19 vaccines and a partisan shift in expectations due to the anticipated impact of Biden's economic policies,” he added.