Americans making more than $100,000 are quickly losing faith in the economy-and it's a red flag for the white-collar job market | Fortune

"U.S. consumer sentiment may have risen slightly in recent weeks, according to preliminary findings from the University of Michigan's January Consumer Sentiment Survey released Friday. Its index rose to 54 from 52.9 last month. The improvement stems from "gradually receding" worries about the effects of tariffs, according to a statement, as year-ahead inflation expectations remained at their lowest level since January of last year."

"But the uptick in positivity was tempered by declining faith in labor markets, particularly sensitive for high-income households, said Joanne Hsu, an economist who directs the university's research surveys. As the job market's "no-hire, no-fire" regime of the past year shows signs of wavering, pessimism is starting to creep into America's upper echelons. "While labor market expectations have essentially held steady for lower income consumers, higher income consumers have seen quite a bit of deterioration," Hsu told Fortune. "Higher income, higher educated consumers are just showing increased worries about what's happening in labor markets.""

"The U.S. economy is a slightly steadier ship than many had expected heading into 2026, but with the labor market looking increasingly shaky, even one of the most optimistic demographics of the past year is starting to feel down."

Preliminary University of Michigan January Consumer Sentiment Survey shows the index rose to 54 from 52.9, indicating slightly higher consumer sentiment. The uptick reflects gradually receding worries about tariffs while year-ahead inflation expectations sit at their lowest level since January of last year. Gains in overall sentiment are offset by weakening faith in labor markets, with higher-income and higher-educated consumers expressing growing concern. The job market's "no-hire, no-fire" conditions show signs of wavering, contributing to rising pessimism among upper-income households. Consumer confidence declined broadly through 2025, with the lowest and middle terciles falling 29.8% and 27.6% between January and November.

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