U.S. Consumer Sentiment Edges Up Slightly, but Inflation and Unemployment Fears Linger

Survey data released by the University of Michigan on Friday, December 19, showed that the final reading of the U.S. Consumer Sentiment Index rose to 52.9 in December, up from 51.0 in November but far below the 74.0 recorded in December 2024.


The university's final December reading for the Current Economic Conditions Index fell to 50.4, down from 51.1 in November and 75.1 in December 2024. Meanwhile, the Consumer Expectations Index climbed to 54.6, an increase from 51.0 in November but still below the 73.3 seen a year earlier.

Despite this month's improvement, consumer sentiment remains nearly 30% lower than in December 2024. High prices and tariff impacts continue to be top concerns for U.S. consumers making major purchases. Approximately 47% of respondents reported that elevated prices were straining their personal finances—matching November's rate and up from 35% in the same period last year.

Consumers also anticipate that inflation will remain high in the foreseeable future, which could erode the purchasing power of their budgets.

Throughout the year, U.S. consumers have expressed widespread concerns about a deteriorating labor market. In December, about 63% of consumers expected unemployment to rise over the next year, a figure significantly higher than the 40% reported in December 2024.