US Consumer Confidence Slightly Up in December, Overall Sentiment Remains Cautious

According to sources, the University of Michigan's Consumer Survey Director Joanne Hsu stated that in early December, the consumer confidence index rose by 2.3 points to 53.3, with the increase falling within the margin of error. This month's growth was mainly concentrated among younger consumer groups. While views on the current situation have not changed much, expectations have improved - with personal financial expectations rising by 13%, and improvement trends seen across various age, income, education, and political inclination groups. However, the personal financial expectations index for December is still nearly 12% lower than at the beginning of the year. Labor market expectations have slightly improved, but remain relatively subdued. Consumers believe that some indicators have slightly improved from November, but overall sentiment remains generally cautious, with high cost of living continuing to be a major pressure point. Looking ahead, the one-year inflation expectation has decreased from 4.5% in November to 4.1% in December, the lowest level since January 2025, achieving four consecutive months of decline, but short-term inflation expectations remain higher than January's 3.3%. Long-term inflation expectations have decreased from 3.4% in November to 3.2% in December, remaining unchanged from January 2025.

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