U.S. consumer sentiment edges up in December, but budget worries persist |
U.S. consumer sentiment rose slightly in December, although concerns over affordability and job security continued to weigh on households. The University of Michigan's final December sentiment increased 1.9 points to 52.9, missing the median 53.5 reading expected among economists polled by Bloomberg. While expectations improved to a four-month high, perceptions of current conditions fell to a record low, with big-ticket purchases seen as especially unaffordable. Despite lower inflation expectations, weak job growth and a rising unemployment rate are keeping sentiment nearly 30% below year-ago levels. “Despite some signs of improvement to close out the year, sentiment remains nearly 30% below December 2024, as pocketbook issues continue to dominate consumer views of the economy", commented Joanne Hsu, director of the survey.
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