US consumer sentiment improved more than expected in December. The University of Michigan’s consumer climate survey rose to 59.7 points from 56.8 points in the previous month, the university announced Friday after the second estimate. Analysts expected confirmation of the initial estimate of 59.1 points.
Thus consumer sentiment moved further from the record high of 50.0 points reached in June. In December, both the assessment of expectations and the current situation improved.
“Mood is still poor and is 15 points below last year’s value,” the university commented on the numbers. “However, extremely negative consumer sentiment moderated this month as inflationary pressures eased.”
Consumers’ short-term inflation expectations unexpectedly fell significantly. In one year, the inflation rate is 4.4 percent. This is the lowest level since June 2021. In the previous month, this value was 4.9 percent. In the first assessment, 4.6 percent was determined
According to the university, the primary reason for the decline was petrol prices. Looking ahead five to ten years, consumers expect a rate of 2.9 percent. Initially, 3.0 percent were diagnosed. However, the US Federal Reserve is targeting a rate of two percent.
The University of Michigan’s indicator is a measure of the purchasing behavior of American consumers. It is based on a telephone survey of around 500 households. An assessment of the financial and economic situation and the corresponding expectations are queried.
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