US consumer confidence hits seven-month high, inflation expectations rise
By Alexander Bueso
Date: Friday 06 Dec 2024
(Sharecast News) - Consumer confidence in the US rose for a fifth month running in December, the results of a closely followed survey revealed.
As did expectations for inflation.
The University of Michigan's consumer confidence index rose from a reading of 71.8 for November to 74.0 in December.
Economists had penciled in a reading of 73.0.
It was the sub-index tied to current conditions that drove the increase in the headline gauge, jumping from 63.9 to 77.7.
Nevertheless, according to the survey's director, Joanne Hsu, that spike was the result of a "surge" in buying conditions for durable goods, but because Americans assessed that purchasing now would allow one to front run price increases.
Expectations meanwhile continued to "recalibrate" following the presidential elections, according to Hsu.
Democrats were anticipating a resurgence in price gains whereas Republicans said in interviews that they expected an "immense" slowdown in inflation.
Separately, a gauge for inflation expectations one-year ahead rose from 2.6% to 2.9%.
That was the highest reading for six months but remained within the 2.3-3.0% range that was in place during the two years prior to the pandemic.
Long-run inflation expectations on the other hand ticked lower by one tenth of a percentage point to 3.2%.
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