UoM Consumer Sentiment drops to 96.8 in December
Index of Consumer Sentiment released by the University of Michigan dropped to 96.8 in the first preliminary reading of December from 98.5 and missed the market estimate of 99.
Consumer sentiment has remained quite favorable although it continued to slowly recede in early December from its October cyclical peak.
Most of the recent decline was concentrated in the long-term prospects for the economy, while consumers thought current economic conditions have continued to improve.
Perhaps the most important changes in early December were higher income expectations as well as a higher expected inflation rate in 2018.
Income gains have been slowly improving during the past year, and the data indicate that trend has continued.