U.S. Consumer Sentiment Rebounds Much More Than Expected In December

(RTTNews) - Preliminary data released by the University of Michigan on Friday showed consumer sentiment in the U.S. has improved much more than anticipated in the month of December.

The University of Michigan said its consumer sentiment index climbed to 53.3 in December from 51.0 in November. Economists had expected the consumer sentiment index to rise to 52.0.

The bigger than expected rebound by the consumer sentiment index came after it dropped to its lowest level since hitting a record low of 50.0 in June 2022.

Surveys of Consumers Director Joanne Hsu noted the increase in consumer sentiment was concentrated primarily among younger consumers.

"Consumers see modest improvements from November on a few dimensions, but the overall tenor of views is broadly somber, as consumers continue to cite the burden of high prices," Hsu added.

The report showed the index of consumer expectations jumped to 55.0 in December from 51.0 in November, while the current economic conditions index slipped to 50.7 in December from 51.1 in November.

On the inflation front, the University of Michigan said year-ahead inflation expectations tumbled to 4.1 percent in December from 4.5 percent in November, falling to the lowest reading since January 2025.

Year-ahead inflation expectations decreased for the fourth consecutive month but remain well above the 3.3 percent seen in January.

Long-run inflation expectations also softened from to 3.2 percent in December from 3.4 percent in November, matching the January 2025 reading.