UMich: U.S. Consumer Sentiment Rebounds in December


   
Karim Bastati
DTN Analyst

   VIENNA (DTN) -- U.S. consumer sentiment rebounded in December as personal 
financial expectations improved, although the burden from high prices remained, 
the University of Michigan's Surveys of Consumers published on Friday (12/5) 
said.

   UMich's Index of Consumer Sentiment rose 2.3 points to 53.3, according to 
preliminary data for December.

   Last month, the index plummeted to 51 points, marking its lowest reading 
since July 2022. Year-over-year, the index was down 20.7 points, or 28%.

   UMich's Index of Consumer Expectations, which reflects the economic outlook 
over the next 12 months, rose 4 points to 55. That was a 7.8% increase from 
November, although the reading was down 25% from the same month last year. 

   In contrast, UMich's Current Economic Conditions Index, measuring sentiment 
about personal finances and buying conditions, continued to slide in December, 
slipping 0.4 points to 50.7. Year-on-year, the index was down 32.5%.

   "Overall, while views of current conditions were little changed, 
expectations improved, led by a 13% rise in expected personal finances, with 
improvements visible across age, income, education, and political affiliation," 
said Surveys of Consumers Director Joanne Hsu.

   Notwithstanding the rebound, the December reading on expected personal 
finances was still nearly 12% below where it began the year, she noted.

   "Consumers see modest improvements from November on a few dimensions, but 
the overall tenor of views is broadly somber, as consumers continue to cite the 
burden of high prices," Hsu added.

   Year-ahead inflation expectations fell for the fourth consecutive month to 
an eleven-month low of 4.1%, the December data showed. Short-run inflation 
expectations and inflation uncertainty, however, remained above January 2025 
levels.




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