Keeping you up to date on the latest data releases.
- Consumer Sentiment
The University of Michigan’s Index of Consumer Sentiment was revised lower in December, and is now estimated to have fallen to an index level of 72.9, nearly ten points below November’s recent cyclical high. The overall decline in sentiment was driven almost entirely by a drop in consumers’ expectations—from 77.6 in November to 63.8 in December—reportedly as respondents became increasingly concerned over the looming fiscal cliff. The current conditions component edged down slightly during the month (from 90.7 to 87.0), though it ended the year up 7.4 points. In December, the median respondent’s expectation over the next year is for inflation to rise 3.2 percent, up 0.1 percentage point from November. Over the longer-term (Five-to-ten years ahead), the median inflation expectation is for an increase of 2.9 percent, up 0.1 percentage point from last month, but remaining within its “normal” range of 2.7 to 3.0 percent that it has oscillated around throughout the past few years.