As 2023 draws to a close, U.S. consumers remain optimistic about the inflation outlook, which contributes to the strength of consumer confidence**.
According to the University of Michigan Consumer Sentiment Report, U.S. consumers expect a final value of 3 percent for inflation in the year ahead1%, in line with the preliminary reading, the lowest level since March 2021.
Data released on Friday showed that consumers expect inflation to be 2. over the next 5-10 years9%。The initial value is 28%。
The University of Michigan Consumer Sentiment Index rose from 61 in November3 rises to 69A five-month high of 7. The increase was 84 points, the largest since 2005. Economists surveyed by Bloomberg had a median of 69 for December4。
Joanne Hsu, who is in charge of the survey, said in a statement that the rebound in confidence "is rooted in a significant improvement in consumer perceptions of the trajectory of inflation." ”
"Overall, market sentiment has returned to its general upward trend since inflation peaked in June last year, although there is still a long way to go to reach pre-pandemic levels under the pressure of high prices," HSU said. ”
The report, along with other data from this week, helped ease fears of a contraction in economic activity early next year. Stronger confidence, combined with lower interest rates and expectations that price pressures will continue to weaken, are expected to drive stronger growth in household spending.
Data released early on Friday showed a modest Consumer Index (CPI) for November, reinforcing market expectations that the Fed will pivot to rate cuts sometime in 2024.
The conditions for purchasing durable goods have improved. Consumers' perception of their finances has also improved.
The index, which measures the current state of the economy, rose from 68 in November3 rises to 733。The index that measures the outlook for the economy has risen from 56 a month ago8 to 674。
This article is sourced from: the financial world.