The final
reading for the December Reuters/Michigan index of consumer sentiment came in
at 74.0 compared to the flash reading of 74.0 and the November final reading of
71.8. This was the highest
reading since April (77.2).
Economists
had anticipated the indicator to be unrevised at 74.0.
The details of
the latest Surveys of Consumers of the University of Michigan revealed that the
index of current economic conditions surged by 17.5 per cent m-o-m to 75.1 this
month, while the index of consumer expectations fell by 4.7 per cent m-o-m to 73.3.
The survey also
found that the year-ahead inflation expectations jumped from 2.6 per cent in November to 2.8 per cent in December,
compared
to the preliminary reading of 2.9 per cent. This marked the first rise in seven
months and represented the highest reading since August (2.8 per
cent). Meanwhile,
the 5-year inflation expectations dropped from 3.2 per cent in November
to 3.0 per cent, compared to the preliminary reading of 3.1 per cent.
Commenting on
the latest results, Joanne Hsu, Surveys of Consumers Director, said that sentiment
is currently about midway between the all-time low reached in June 2022 and
pre-pandemic readings. “Broadly speaking, consumers believe that the economy
has improved considerably as inflation has slowed, but they do not feel that
they are thriving,” she noted.