Consumer sentiment soared in January to its highest level since July 2021, according to the University of Michigan Surveys of Consumers.

The index of consumer sentiment rose 13.1% in January 2024 from December 2023 to a level of 78.8 and follows another sharp increase in December. On a year-over-year basis, the index was up 21.4%.

“Consumer views were supported by confidence that inflation has turned a corner and strengthening income expectations,” according to the report. “Over the last two months, sentiment has climbed a cumulative 29%, the largest two-month increase since 1991 as a recession ended.”

There was a broad consensus of improved sentiment across age, income, education and geography. Democrats and Republicans alike showed their most favorable readings since the summer of 2021. Sentiment has risen nearly 60% above the all-time low measured in June 2022.