Consumer Sentiment: Continued Rebound

Bottom Line:  The preliminary reading of consumer sentiment from the University of Michigan's survey rebounded modestly in early December, more than expected. While gains were seen across demographics, those with higher incomes and stock market holdings saw the sharpest gains following November's equity market rally. Inflation expectations fell to their lowest level in 15 months but remained at historically high levels, with the year-ahead expectation coming in at 4.6%. While this report offers hints of encouragement, consumer sentiment remains historically low as consumers struggle to assess their financial situations amid continued high inflation, high-interest rates, and increasing job uncertainty.

Consumer Sentiment ROSE by 2.3 points in early December to 59.1%, compared with market expectations for an increase to 57.0%.  Despite this month's modest increase, sentiment is now 16.3% BELOW its year-ago level.
 
Current Conditions ROSE by 1.4 points to 60.2%. This is 18.9% BELOW their year-ago level.

Consumer Expectations ROSE by 2.8 points to 58.4%.  Despite this month's modest increase, expectations are 14.5% BELOW their year-ago level.