Michigan Consumer Sentiment Soared 14% In December

Key Insights

• Consumer Sentiment increased from 61.3 in November to 69.7 in December. 
• Current Economic Conditions improved from 68.3 to 73.3.
• Index of Consumer Expectations rose from 56.8 to 67.4.

On December 22, the University of Michigan released the final reading of Michigan Consumer Sentiment report for December. The report indicated that Consumer Sentiment improved from 61.3 in November to 69.7 in December, compared to analyst consensus of 69.4.

Current Economic Conditions increased from 68.3 in November to 73.3 in December, while Index of Consumer Expectations rose from 56.8 to 67.4.

The Universtity of Michigan commented: “Consumer sentiment confirmed its mid-month reading and soared 14% in December, reversing all declines from the previous four months. These trends are rooted in substantial improvements in how consumers view the trajectory of inflation.”

Today, traders also had a chance to take a look at the New Home Sales report for November. The report showed that New Home Sales declined by 12.2% on a month-over-month basis, compared to analyst consensus of +1.2%.

U.S. Dollar Index  settled near 101.50 after the release of the report. Traders remain convinced that Fed will start cutting rates in the first half of the next year.

Gold  settled near multi-week highs at $2070. Weak dollar provides significant support to gold and other precious metals.

SP500  continued its attempts to settle above the 4780 level. The better-than-expected Consumer Sentiment report may provide additional support to equity markets.

For a look at all of today’s economic events, check out our economic calendar.