December Michigan Consumer Sentiment Revised Down from Preliminary Reading, Still Up From November

BY MT Newswires | ECONOMIC | 10:06 AM EST

10:06 AM EST, 12/19/2025 (MT Newswires) -- The University of Michigan consumer sentiment index was revised down Friday to a reading of 52.9 for December from the 53.3 reading in the preliminary estimate, compared with expectations for an upward revision to 53.5 in a survey compiled by Bloomberg.

That was still above the final reading of 51.0 in November.

The current conditions index was revised down to 50.4 from a 50.7 preliminary estimate, below the 51.1 reading in November, while the expectations index was revised down to 54.6 from 55.0. The index was 51.0 in November.

Michigan said that labor market expectation moved higher in December, but 63% of respondents still expected unemployment to rise next year.

Respondents expected a 4.2% inflation rate over the next year and 3.2% annual inflation over the next five years, down from 4.5% and 3.4% respectively in November.

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.

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article