– US consumer sentiment is improving significantly
US consumers are more optimistic about the future. Inflation expectations are falling, and the barometer rises significantly in December.
US consumer sentiment improved significantly before the start of the year. The index rose to 69.4 points in December from 61.3 points the previous month, the University of Michigan announced Friday in its monthly survey. Economists polled by Reuters had expected only a slight increase to 62.0 points. Consumers evaluated their situation and prospects much better than before.
Recently, inflation, which eats away at Americans’ purchasing power, has begun to decline. Inflation fell to 3.2% in October, and is expected to fall to 3.1% in November data due on Tuesday, if experts polled by Reuters are correct.
Consumer inflation expectations have also now lowered: looking ahead to the next 12 months, they expect the inflation rate for goods and services to reach 3.1%. In November, consumers estimated 4.5%. The US Federal Reserve has fought high inflation with a series of interest rate increases. Recently I paused twice in a row. Federal Reserve Chairman Jerome Powell indicated that the central bank could remain silent given the progress it has made in combating inflation. The next interest rate decision is scheduled for December 13.