The Dow Jones (DJIA) is trading higher on Friday, despite a Consumer Sentiment Index update from the University of Michigan that surprised to the downside.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
Consumer sentiment was 52.9 in December, rising from 51.0 in November but below the expectation of 53.5. A reading of 70 or greater signals optimism, while a reading of 60 or below signals pessimism.
“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,” said Surveys of Consumers Director Joanne Hsu.
Consumer Inflation Expectations Ease
Furthermore, year-ahead inflation expectations fell for a fourth consecutive month to 4.2%, marking an 11-month low. Long-run inflation expectations fell to 3.2% from 3.4%.
Hsu added that expectations for personal finances and business conditions climbed during the month, although 63% of consumers expect unemployment to rise during the next year. The unemployment rate hit a 4-year high of 4.6% in November.
Stay ahead of macro events with our up-to-the-minute Economic Calendar — filter by impact, country, and more.