MICHIGAN (dpa-AFX) – US consumer sentiment brightened more than expected in December. The consumer climate surveyed by the University of Michigan rose from 56.8 points in the previous month to 59.1 points, as the university announced on Friday after an initial estimate. Analysts had only expected an increase to 57.0 points.
The consumer climate thus moved further away from the record low of 50.0 points reached in June. In December, both the assessment of expectations and the current situation improved.
Meanwhile, consumers’ near-term inflation expectations have fallen unexpectedly. Over a year, they see an inflation rate of 4.6 percent. This is the lowest level since September 2021. In the previous month, this value was 4.9 percent. According to the university, this is primarily due to the fall in petrol prices. Looking ahead five to ten years, consumers continue to expect a rate of 3.0 percent. However, the US Federal Reserve is aiming for a rate of two percent.
The indicator from the University of Michigan is a measure of the purchasing behavior of US consumers. It is based on a telephone survey of around 500 households. The financial and economic situation assessment and the corresponding expectations are queried./jsl/mis