Consumer Sentiment Rebounds as Inflation Expectations Hit 11-Month Low, Survey Shows

01:12 PM EST, 12/19/2025 (MT Newswires) -- US consumer sentiment improved after a four-month downturn, while inflation expectations hit 11-month lows, final University of Michigan survey results showed Friday.

The main sentiment index rose to 52.9 this month from 51 in November. That's slightly lower than the initial reading of 53.3. The consensus was for a 53.5 reading in a poll compiled by Bloomberg.

"Buying conditions for durable goods fell for the fifth straight month, whereas expectations for personal finances and business conditions rose in December," Surveys of Consumers Director Joanne Hsu said in a statement. "Labor market expectations lifted a bit this month, though a solid majority of 63% of consumers still expects unemployment to continue rising during the next year."

The gauge for current economic conditions ticked down to 50.4 this month from 51.1 in November, marking its fifth consecutive month of decline. The expectations measure hit a four-month high of 54.6 from last month's 51, the survey showed.

"Despite some signs of improvement to close out the year, sentiment remains nearly 30% below December 2024, as pocketbook issues continue to dominate consumer views of the economy," Hsu said.

Year-ahead inflation expectations ticked down to 4.2% this month from 4.5% in November, while the five-year outlook eased to 3.2% from 3.4%. Both readings were the lowest since January.

On Thursday, Bureau of Labor Statistics data showed US consumer prices rose less than expected on an annual basis in November, while core inflation decelerated to the lowest since early 2021.

Consumers haven't let their tariff and inflation concerns keep them from shopping this holiday season, as a still-solid labor market has helped fuel steady post-Thanksgiving retail sales, UBS analysts said last week.

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