The University of Michigan said its consumer sentiment index climbed to 74.0 in December from 71.8 in November. Economists expected the index to rise to 73.0.
WASHINGTON — A report released by the University of Michigan on Friday showed consumer sentiment in the U.S. improved by slightly more than anticipated in the month of December.
The University of Michigan said its consumer sentiment index climbed to 74.0 in December from 71.8 in November. Economists had expected the index to rise to 73.0.
The consumer sentiment index reached its highest level since April, as the current economic conditions index spiked to 77.7 in December from 63.9 in November.
“A surge in buying conditions for durables led current economic conditions to soar more than 20%,” said University of Michigan’s Surveys of Consumers Director Joanne Hsu.
She added, “Rather than a sign of strength, this rise in durables was primarily due to a perception that purchasing durables now would enable buyers to avoid future price increases.”
Meanwhile, the report said the index of consumer expectations slumped to 71.6 in December from 76.9 in November, falling to its lowest level since July.
“The expectations index continued the post-election re-calibration that began last month, climbing for Republicans and declining for Democrats in December,” said Hsu.
On the inflation front, the report said year-ahead inflation expectations jumped to 2.9% in December from 2.6% in November.
Year-ahead inflation expectations reached their highest level in six months but remain within the 2.3-3.0% range seen in the two years pre-pandemic.
The University of Michigan said long-run inflation expectations edged down to 3.1% in December from 3.2% in November but are still modestly elevated relative to the range of readings seen in the two years pre-pandemic.
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Author: amyc