December Consumer Sentiment Revised Lower to 52.9, Inflation Metrics Detailed

University of Michigan Consumer Sentiment

• 📉 The December final read on consumer sentiment has been revised lower to 52.9, down from the mid-month read of 53.3.
• ⚠️ This marks the weakest sentiment reading since November's 51, and is not far from the all-time low of 50 recorded in June 2022.

Current Conditions and Expectations

• 📌 Current conditions sentiment also saw a downward revision, moving from 50.7 to 50.4, establishing a new all-time low.
• 📊 Expectations sentiment was revised from 55 to 54.6, making it the weakest reading since November.

Inflation Data Insights

• 📈 The one-year inflation expectation saw a slight increase, moving from 4.1% to 4.2%.
• 🧮 The five-to-ten-year inflation rate remained unchanged at 3.2%.

Market Reaction to Economic Data

• 🚀 Despite weaker-than-expected sentiment and slightly hotter inflation data, equity markets, including the Dow Jones Industrial Average, are reaching new session highs.
• 🧐 The speaker notes that the University of Michigan sentiment data has not been correlating with equity market movements as it typically does.