RetailSails

Consumer sentiment in the U.S. held relatively steady in early January, as views of an improving economy and rising stock prices were offset by worries over personal finances, unemployment, and inflation. The Reuters/University of Michigan Index of Consumer Sentiment rose slightly to 72.8 from 72.5 in late December.

The Current Conditions Index rose to 81.0 in January from 78.0 last month, its highest level since March of 2008. However, this was offset by a drop in the Consumer Expectations Index which has been stagnant since May of 2009, from 68.9 in December to 67.5.

“While consumers anticipated continuing gains in the overall economy, few consumers expected an immediate shift toward the type of positive developments that would improve their job and income prospects,” Richard Curtin, director of the surveys, said in a statement.

While sentiment has rebounded significantly from a 28-year low of 55.3 reached in November 2008, consumers are still extremely concerned with their own finances. Better economic conditions have yet to lead to any meaningful improvement in employment, and foreclosures continue to wreak havoc in the housing market. As gas prices once again creep towards $3/gallon, inflation expectations continue to ramp up among consumers.