Consumer sentiment in the U.S. has improved by much more than anticipated in the month of December, according to a report released by the University of Michigan on Friday.
The University of Michigan said the preliminary reading on its consumer sentiment index for December came in at 98.0 compared to the final November reading of 93.8. Economists had expected the index to inch up to 94.1.
"Consumer confidence surged in early December to just one-tenth of an Index point below the 2015 peak—which was the highest level since the start of 2004," said Richard Curtin, the survey's chief economist. "The surge was largely due to consumers' initial reactions to Trump's surprise victory."
He added, "When asked what news they had heard of recent economic developments, more consumers spontaneously mentioned the expected positive impact of new economic policies than ever before recorded in the long history of the surveys."
The report said the current economic conditions index surged up 112.1 in December from 107.3 in November, while the index of consumer expectations jumped to 88.9 from 85.2.
On the inflation front, one-year inflation expectations edged down to 2.3 percent in December from 2.4 percent in November and five-year inflation expectations dipped to 2.5 percent from 2.6 percent.
by RTT Staff Writer
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