Consumer sentiment in U.S. improved

According to data provided by the University of Michigan, consumers are getting more confident in the U.S. economic conditions. The information obtained in the latest consumer survey showed that citizens are now more optimistic about the economy despite possible recession, interest rate hikes and record high prices.

As it was demonstrated in the survey, the consumer sentiment index rose to the level of 59.1 in December. For comparison, the November reading of the index was 56.8.

It’s also necessary to note that consensus estimates on Refinitiv showed that economists projected the index to reach the level of 56,9.

The registered growth of the index by 2.3 points became its most notable increase since August, when there was a rise by 6.7 points. At the same time, the index fell by 3.1 in November, mirroring a decline in consumer sentiment.

Nevertheless, the survey results still reflect more negative expectations of the future than it did last year, when the index was at the level of 70.6.

However, the survey’s director, Joanne Hsu, noted that concerns over high prices have eased to a certain degree.

Prices for some energy commodities have recently declined, and now they are lower than a year ago. But at the same time, prices for other types of goods and services remain historically high. The situation has resulted in the Fed’s rate hiking program, which, in its turn, caused distress for both consumers and producers, thus leading to job cuts in some companies.