US consumer confidence rises, inflation expectations drop, University of Michigan says

Consumer confidence in the US rebounded a tad more than previously thought at the end of 2022, the final results of a closely followed survey showed.

The University of Michigan's consumer confidence index improved from a reading of 56.8 in November to 59.7 for December.

That was up from a preliminary estimate of 59.1.

"Sentiment remains relatively downbeat at 15% below a year ago, but consumers’ extremely negative attitudes have softened this month on the basis of easing pressures from inflation," explained survey director Joanne Hsu.

"One-year business conditions surged 25%, and the long-term outlook improved a more modest but still sizable 9%. Still, both measures are well below 2021 readings. Assessments of personal finances, both current and future, are essentially unchanged from November."

A sub-index tracking consumer expectations increased from 55.6 to 59.9 while that linked to their assessments of current economic conditions edged up from 58.8 to 59.4.

Inflation expectations one year ahead declined noticeably, from 4.9% in November to 4.4% in December (Preliminary: 4.6%).

That was their lowest reading for 18 months but remained "well above" the levels recorded two years before, Hsu added.

On a five to ten year horizon, inflation expectations ticked down by one tenth of a percentage point versus November to 2.9% (Preliminary: 3.0%).