The University of Michigan released its revised reading on U.S. consumer sentiment in the month of December on Friday, showing sentiment unexpectedly improved more than previously estimated.
The report showed the consumer sentiment index for December was upwardly revised to 59.7 from the preliminary estimate of 59.1. Economists had expected the index to be unrevised.
With the unexpected upward revision, the consumer sentiment index showed a notable rebound after hitting 56.8 in November.
The increase by the headline index came as the current economic conditions index rose to 59.4 in December from 58.8 in November, while the index of consumer expectations jumped to 59.9 from 55.6.
“Sentiment remains relatively downbeat at 15% below a year ago, but consumers’ extremely negative attitudes have softened this month on the basis of easing pressures from inflation,” said Surveys of Consumers Director Joanne Hsu.
The report showed one-year inflation expectations in December were downwardly revised to 4.4 percent from 4.6 percent.
One-year inflation expectations were at the lowest level in 18 months, down sharply from 4.9 percent in November.
“Declines in short-run inflation expectations were visible across the distribution of age, income, education, as well as political party identification,” said Hsu.
Five-year inflation expectations in December were also downwardly revised to 2.9 percent from 3.0 percent, which was unchanged from November.
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