Consumer Sentiment Slightly Improves, Inflation Expectations Drop

Consumers see a slight uptick in sentiment, with the Michigan Consumer Sentiment Index rising to 53.3 in December, up from Novembers 51.0. This improvement, though modest, is better than expected and could impact interest rates, stock market performance, and personal finances. Despite this, consumers remain concerned about high prices, with a nearly 12% drop in their outlook on personal finances for the coming year. However, theres a growing optimism about future inflation, with expectations dropping to 4.1% in December, the lowest since January. Experts warn that full recovery of consumer sentiment may not occur until inflation expectations return to pre-pandemic levels.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.