U.S. Consumer Sentiment edges higher in December

 Consumer sentiment in the U.S. improved slightly in December, according to preliminary data from the University of Michigan survey, even as Americans continue to face a frozen job market and persistent inflationary pressures.

Consumers 

Key Survey Findings

- Sentiment index rose to 53.3, up from 51 in November. Bloomberg's economist survey had projected 52.

- This marks the first monthly increase since July.

- Despite the gain, sentiment remains 28% lower than a year ago.

Commentary from Joanne Hsu (Survey Director)

- Current conditions were little changed, but expectations improved, led by a 13% rise in expected personal finances.

- Gains were broad‑based across age, income, education, and political affiliation.

- However, expected personal finances remain 12% below January levels.

- Labor market expectations improved slightly but remain "relatively dismal".

- Younger consumers drove sentiment gains, rising 4.5% from November.

Inflation & Price Expectations

- Consumers expect prices to rise at 4.1% over the next year, the lowest since January.

- Down from 4.5% expected last month.

- Overall tone remains "broadly somber" as high prices continue to weigh on households.

Mixed Economic Data

- Unemployment claims fell to their lowest in more than three years (week ending Nov. 29).

- ADP data showed employers unexpectedly shed 32,000 jobs in November.

- Challenger report: employers announced 71,321 layoffs last month.

- Official government data (delayed by shutdown) shows unemployment at 4.4% and inflation at 3% (September).

- Fresh payroll and inflation data expected Dec. 16 and Dec. 18.

[Put]  In summary: December's uptick in consumer sentiment offers a modest sign of resilience, driven by improved expectations and easing inflation forecasts. Yet the overall mood remains cautious, with households still burdened by high prices and a sluggish labor market.

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This summary is for inform ational purposes only and does not constitute financial advice. In vestors should conduct their own research before making investment decisions.

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