The first look at U of Michigan Jan confidence at 72.8 was below expectations of 74 but up a touch from the 72.5 reading in Dec and is the highest since Sept ’09. Current Economic Conditions rose 3 pts to 81 to the highest since March ’08 and is the bright spot within the data and we’ll have to see if the reason is some improvement in the labor market or at least stabilization that has been seen in the initial jobless claims data. The Economic Outlook though fell 1.4 pts. Inflation expectations rose .3% to 2.8% after two months of declines as gasoline prices have risen to 15 month highs this week according to AAA. I highlight gasoline prices because it’s a high profile price point that influences inflation expectations.
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