Consumer Sentiment Index in the United States increased 5.1% on a monthly basis to 59.7 points in December, according to a final report published by the University of Michigan on Friday. The index was higher than the preliminary figure but still plummeted 15.4% year-over-year.
The Current Economic Conditions Index rose by 1% month-on-month but nosedived by 19.9% compared to December 2021. Meanwhile, the Index of Consumer Expectations was up 7.7% from the previous month but dropped 12.3% on an annual basis.
"Year-ahead inflation expectations improved considerably but remained elevated, falling from 4.9% in November to 4.4% in December, the lowest reading in 18 months but still well above two years ago... At 2.9%, long run inflation expectations have stayed within the narrow, albeit elevated, 2.9-3.1% range for 16 of the last 17 months," Surveys of Consumers Director Joanne Hsu revealed in the report.
