Source: University of Michigan
Consumer sentiment posted a slight gain from the previous month in December, but a double-digit decline from the same month last year.
- The Index of Consumer Sentiment stood at 70.4 in December, up 4.5% from the 67.4 in November but down 12.8% from 80.7 the same month last year.
- The Current Economic Conditions index climbed 1.4% to 74.6% from 73.6 in November but fell 17.1% from 90.0 in December 2020.
- The Index of Consumer Expectations for the month grew 6.8% to 67.8 from 63.5 in November but slipped by 9.1% from 74.6 a year ago.
- Chief Economist Richard Curtin noted that the results were driven by the big disparity between the monthly gain among households with the incomes in the lowest third versus the losses among households in the middle and top third.
- Curtin attributed the decline in future expectations to the rising inflation, as almost half of the consumers expect a deceleration in inflation.