Michigan Consumer Sentiment Index Rise More Than Expected in Preliminary December Survey

10:20 AM EST, 12/05/2025 (MT Newswires) -- The University of Michigan's preliminary consumer sentiment index rose to 53.3 in December from 51.0 in November, above expectations for a smaller increase to 52.0 in a survey compiled by Bloomberg as of 7:35 am ET.

The current conditions index fell to 50.7 in December from 51.1 in November, while the expectations reading increased to 55.0 from 51.0.

Michigan said that the improvement in sentiment was primarily driven by young consumers. The increase in consumer expectations was driven by a gain in expected personal finances, with optimism across all age groups, education, income and political affiliation.

Expectations about employment ticked up modestly but are still viewed pessimistically. Overall, consumers reported some improvement compared to the previous month but remain weighed down by persistently high prices.

Respondents saw one-year inflation expectations at 4.1%, down from 4.5% in November, while five-year inflation expectations fell to 3.2% from 3.4%.

The twice-monthly Michigan Sentiment index measures consumer sentiment early in the current month (the preliminary estimate) and is then revised later in the month (the final estimate). The headline index is a combination of the current assessment and expectations for the near future.

An increase in the reading suggests consumers are more confident, a positive for stocks if that confidence translates into spending. Increased demand is usually inflationary, a negative for bonds.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.