The US economy continues to exhibit a complex form of resilience as fresh data from the Bureau of Labor Statistics and the Census Bureau suggest that consumer spending remains robust despite persistent price pressures.
US Consumer Proves Resilient as Wholesale Inflation Signals Persistence
14 January 2026 - 15:25 CET
According to the Census Bureau report released on 14 Jan, retail sales for November rose by 0.6% on a month-on-month basis. This figure surpassed economists' expectations of a 0.5% increase and followed a revised October contraction of 0.1%.
The retail data was released alongside a delayed producer price report, which was postponed following a 43-day lapse in federal appropriations. Wholesale prices for final demand increased by 0.2% in November, following a 0.3% rise in September. On an unadjusted basis, the index for final demand rose 2.7% for the 12 months ended in the final quarter of 2025. The data indicate that gasoline prices, which advanced 11.8% in the previous reporting period, remain a significant factor in goods-based inflation.
Consumer sentiment edges higher according to preliminary data
The University of Michigan's preliminary January reading of the Index of Consumer Sentiment rose to 54.0, up from the final reading of 52.9 in December. While this represents a second consecutive monthly rebound, the reading remains nearly 25% below the 71.7 level recorded in January 2025. One-year inflation expectations held steady at 4.2%, while long-term expectations rose from 3.2% to 3.4%.
Surveys of Consumers Director Joanne Hsu stated that while consumers perceived some modest improvement in the economy over the past two months, their sentiment remains guarded. Hsu noted that they continue to be focused primarily on kitchen table issues, like high prices and softening labour markets. Although consumers’ worries about tariffs appear to be gradually receding, they remain guarded about the overall strength of business conditions and labour markets.
Market reaction restrained amid institutional shift
The reaction across financial markets remained relatively restrained as investors focused on the beginning of the corporate earnings season. Following the inflation data, the benchmark US 10-year Treasury yield moved to 4.16%. This follows the December employment report, which showed that total nonfarm payroll employment changed little, increasing by 50,000, while the unemployment rate settled at 4.4%.
Digital assets have maintained their recent momentum, with Bitcoin trading at approximately $95,000. As observed in our analysis of the Bitpanda IPO, the market appears increasingly focused on structural growth and institutional integration. The current price action suggests that the professionalization of the asset class has provided a level of insulation from traditional macro fluctuations
