Economic Report: U.S. Consumer Sentiment Improves Markedly In December

Author photo

By

Senior economics reporter

A Black Friday shopper walks back to his car with a television from Best Buy last month in Lone Tree, Colorado.

The numbers: American consumer attitudes improved markedly in December, the University of Michigan said Friday in a preliminary estimate.

The University of Michigan’s gauge of consumer sentiment rose to a preliminary December reading of 99.2 from a final November reading of 96.8. Economists polled by MarketWatch has expected a December reading of 96.9.

What happened: According to the report, a gauge of consumers’ views on current conditions rose to 115.2 in December from 111.6 in November, while a barometer of their expectations rose to 88.9 from 87.3.

Big picture: Combined with the strong November jobs report published Friday, rising confidence eases some worries about the near-term economic outlook.

For context, the consumer-sentiment gauge has averaged 97 over the past three years.

Economists follow readings on confidence to look for clues about consumer spending, the backbone of the economy. Next week the government will report on retail sales for November. Spending has been lackluster in the past few months.

Read: U.S. sees hiring surge in November

Market reaction: Stocks jumped after the November job report handily beat expectations. The Dow Jones Industrial Average DJIA, +1.08%  was up over 275 points in early trading.

RECENT NEWS

The Penny Drops: Understanding The Complex World Of Small Stock Machinations

Micro-cap stocks, often overlooked by mainstream investors, have recently garnered significant attention due to rising c... Read more

Current Economic Indicators And Consumer Behavior

Consumer spending is a crucial driver of economic growth, accounting for a significant portion of the US GDP. Recently, ... Read more

Skepticism Surrounds Trump's Dollar Devaluation Proposal

Investors and analysts remain skeptical of former President Trump's dollar devaluation plan, citing tax cuts and tariffs... Read more

Financial Markets In Flux After Biden's Exit From Presidential Race

Re-evaluation of ‘Trump trades’ leads to market volatility and strategic shifts.The unexpected withdrawal of Joe Bid... Read more

British Pound Poised For Continued Gains As Wall Street Banks Increase Bets

The British pound is poised for continued gains, with Wall Street banks increasing their bets on sterling's strength. Th... Read more

China's PBoC Cuts Short-Term Rates To Stimulate Economy

In a move to support economic growth, the People's Bank of China (PBoC) has cut its main short-term policy rate for the ... Read more