Consumer Sentiment in U.S. Increases on Improved Outlooks

(Bloomberg) -- U.S. consumer sentiment increased in December from a month earlier as households grew more upbeat about the economy and the outlook for their finances.

The University of Michigan’s final sentiment index increased to 70.6 during the month from a decade-low of 67.4 in November, data released Thursday showed. Interviews for the latest report were conducted Nov. 22 through Dec. 20.

“Too few interviews were conducted to capture the impact of the rapid spread of the omicron variant in the U.S.,” Richard Curtin, director of the survey, said in a statement. “Confidence and spending are likely to be depressed in January, but it is too early to know the eventual impact of omicron.”

The median estimate of economists in a Bloomberg survey called for no change from the preliminary December reading of 70.4.

The measure of future expectations increased from a month earlier to 68.3, the highest since July. The gauge of current conditions rose to 74.2.

Respondents said they expect inflation to rise 2.9% over the next 5 to 10 years, down slightly from the 3% preliminary reading. They expect prices to advance 4.8% over the next year, lower than the 4.9% initial reading.

The university’s measure of durable-goods buying conditions improved slightly from a month earlier.

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