University of Michigan Consumer Sentiment Index (December):
-
Consumer Sentiment: 52.9 (Expectations: 53.3; Previous: 51)
-
Current Conditions: 50.4 (Expectations: 50.7; Previous: 50.7)
-
Future Expectations: 54.6 (Expectations: 55; Previous: 55)
-
Inflation Expectations – 1 Year: 4.2% (Expectations: 4.1%; Previous: 4.5%)
-
Inflation Expectations – 5 Years: 3.2% (Expectations: 3.2%; Previous: 3.4%)
Why the Data Matters
The University of Michigan Consumer Sentiment Index measures consumer confidence and expectations about the U.S. economy. These readings are important because consumer spending accounts for the majority of U.S. GDP, so shifts in sentiment can directly affect economic growth. Additionally, the data influences financial markets, including stocks, bonds, and currencies, as investor decisions often react to changes in consumer confidence. Finally, inflation expectations derived from these surveys can provide insight into potential Federal Reserve policy moves.
University of Michigan Consumer Sentiment – Results
Consumer sentiment in the U.S. came in at 52.9, slightly below the expected 53.3 but up from 51 in November. Current Conditions were 50.4 (vs. 50.7 expected), and Future Expectations reached 54.6 (vs. 55 expected), indicating moderate optimism with some caution about the economic outlook. Inflation expectations were 4.2% for one year (vs. 4.1% expected; previously 4.5%) and 3.2% for five years (in line with forecasts; previously 3.4%), suggesting slightly elevated near-term inflation but moderate long-term expectations.
Overall, the data points to moderately positive consumer sentiment, slightly below expectations, which could be neutral to mildly negative for the U.S. dollar and the retail sector.
Source: xStation5
Economic calendar: Retail sales from Canada; UoM data from the US
BREAKING: UK retail sales below expectations; GBPUSD ticks lower
BoJ's Ueda Conference (LIVE)
Daily summary: US100 gains after CPI print; markets await BoJ decision 🏛️
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
