Data released Friday showed that consumer confidence rose significantly in January, according to a preliminary report from the University of Michigan. Analysts at Wells Fargo note that the January consumer confidence reading of 6 .6 is the highest in the last year. A view that easing inflationary fronts and rising wages are bolstering sentiment, but a warning that still sour purchasing conditions suggest that the upbeat sentiments presented in this report may not translate into increased spending. Key quotes: „Consumers may not think their economy is great, but they’re certainly less worried than when gas was north of $ a gallon and wage growth wasn’t keeping up with inflation. Current Personal Finance Ratings up 16 percent to eight-most a high reading for the month thanks to higher earnings and slowing inflation… and a little bump in the stock market certainly didn’t hurt either. „The euphoria didn’t spread to the housing market. Conditions for buying an apartment have improved slightly, but are still close to record lows. Elsewhere, business conditions improved somewhat in January, perhaps due to the recent slowdown in inflation, but most households still consider it a bad time to buy a major household item or vehicle. We see this as a sign that purchases of these traditionally larger portfolios are being impacted by higher financing costs. To be clear, the upbeat sentiment in this report does not necessarily translate into an increase in spending.” „Christmas consumer price data showed signs that inflation is still weakening, suggesting the Fed will slow tightening at its next policy meeting. in February, deciding to raise the federal funds rate by just 25 basis points.