This is a developing story. Stay tuned for updates here.
The numbers: The University of Michigan’s gauge of consumer sentiment rose to a preliminary December reading of 69.4 from a six-month low of 61.3 in the prior month. This is the highest level since August.
Economists polled by the Wall Street Journal had expected a December reading of 62.4.
Expectations of inflation cooled in early December, according to the report.
Americans think inflation will average a 3.1% rate over the next year, down from 4.5% in the prior month. That’s the lowest level since March 2021.
Expectations for inflation over the next five years fell to 2.8% from 3.2% in November, which was the highest reading in over a decade.
Key details: According to the report, a gauge of consumers’ views on current conditions jumped to 74 in December from 68.3 in the prior month, while a barometer of their expectations of the future rose to 66.4 from 56.8.
Big picture: A lot of factors were behind the enhance in confidence, with the solid job market and declining gasoline prices mentioned most often by economists. Stock prices have also been strong. Despite the gains, sentiment is still well below prepandemic levels.
Market reaction: Stocks
DJIA
SPX
were higher in early trading on Friday, while the 10-year Treasury yield
BX:TMUBMUSD10Y
rose to 4.21% after the solid job report was released earlier in the morning.
undefined
