#USConsumerConfidence As of January 25, 2025, U.S. consumer confidence has experienced a decline. The University of Michigan's Consumer Sentiment Index decreased to 71.1 in January from 74.0 in December, marking the first drop in six months. This decline is attributed to concerns about the labor market and potential price increases stemming from proposed tariffs by President Donald Trump's administration. Notably, 47% of consumers anticipate higher unemployment, the highest percentage since the pandemic recession. Inflation expectations have also risen. One-year inflation expectations increased to 3.3% in January from 2.8% in December, surpassing the pre-pandemic range of 2.3%-3.0%. Long-term inflation expectations were slightly revised down to 3.2% but remain higher than December's 3.0%. These concerns are linked to anticipated tariff policies. In contrast, the Conference Board's Leading Economic Index® (LEI) for the U.S. suggests fewer headwinds to economic activity ahead, as the LEI's six-month and twelve-month growth rates have become less negative. Globally, consumer confidence has shown improvement. Ipsos' Global Consumer Confidence Index rose by 0.7 points since last month, reaching 48.6. This increase reverses the previous month's losses, though the index remains 0.7 points lower than its reading from the same time last year. Notably, consumer confidence in the U.S. declined by 3.2 points during this period. These mixed indicators reflect the complex economic environment, with domestic concerns about labor markets and inflation contrasting with a more optimistic global outlook.