US consumer sentiment improves in December

(Sharecast News) - US consumer sentiment improved more than initially estimated in December, according to a survey released on Friday. The University of Michigan's final consumer sentiment index printed at 69.7, up from the initial estimate of 69.4. It was also ahead of November's reading of 61.3 and of December 2022's level of 59.8.

The index for current economic conditions came in at 73.3, up from 68.3 in November and 59.6 in the same month a year earlier.

The final index of consumer expectations was 67.4 in December, versus 56.8 the month before and 60.0 in December 2022.

Surveys of consumers director Joanne Hsu said: "Year-ahead inflation expectations plunged from 4.5% last month to 3.1% this month. The current reading is the lowest since March 2021 and sits just above the 2.3-3.0% range seen in the two years prior to the pandemic.

"Long-run inflation expectations fell from 3.2% last month to 2.9% this month, staying within the narrow 2.9-3.1% range for 26 of the last 29 months. Long-run inflation expectations remain elevated relative to the 2.2-2.6% range seen in the two years pre-pandemic."