Consumer Sentiment Shows Slight Improvement in December

According to PANews, the University of Michigan's consumer sentiment index rose by 2.3 points to 53.3 in early December, with the increase falling within the margin of error. The growth was primarily observed among younger consumers. While perceptions of the current situation showed little change, expectations improved, notably with a 13% rise in personal financial outlooks across various demographics, including age, income, education, and political affiliations. Despite this improvement, the personal financial expectations index remains nearly 12% lower than at the beginning of the year. Labor market expectations showed slight improvement but continue to be relatively subdued. Consumers noted minor improvements in some indicators compared to November, yet overall sentiment remains cautious, with high prices continuing to be a significant concern. Looking ahead, the one-year inflation expectation decreased from 4.5% in November to 4.1% in December, marking the lowest level since January 2025 and achieving a four-month consecutive decline. However, short-term inflation expectations remain higher than January's 3.3%. Long-term inflation expectations fell from 3.4% in November to 3.2% in December, matching the January 2025 reading.