A report from
the University of Michigan showed on Friday that the preliminary reading for
the Reuters/Michigan index of consumer sentiment increased 3.1 per cent m-o-m
to 74.0 in early December. This was the highest reading since April (77.2).
Economists had expected
the indicator would increase to 73.0
this month, up from the November final
reading of 71.8.
According to
the report, the index of current economic conditions surged 21.6 per cent m-o-m to 77.7 in December, while the index of
consumer expectations plunged 6.9 per cent m-o-m to 71.6.
The report also
revealed that the estimates of year-ahead expected inflation jumped from 2.6
per cent in November to 2.9 per
cent early this month, the highest level since July (2.9 per cent). Meanwhile, the 5-year expected inflation slipped from 3.2 per cent to 3.1 per
cent.
Commenting on
the latest survey, Surveys of Consumers
Director Joanne Hsu said that consumer sentiment improved for the fifth
consecutive month as a surge in buying conditions for durables led current economic
conditions to soar more than 20 per cent. She also noted that the expectations
index continued the post-election re-calibration that began last month,
climbing for Republicans and declining for Democrats in December.