According to a report from Yahoo Finance, U.S. consumer sentiment improved slightly in December, even as Americans grappled with a frozen job market and rising prices.
The overall preliminary sentiment reading compiled by the University of Michigan’s regular survey of consumers was 53.3, compared to last month’s level of 51. The median estimate from Bloomberg’s survey of economists projected December’s gauge hitting 52. The index hadn’t increased on a monthly basis since July.
But consumer sentiment remains 28% lower than this time a year ago.
“Overall, while views of current conditions were little changed, expectations improved, led by a 13% rise in expected personal finances, with improvements visible across age, income, education, and political affiliation,” Joanne Hsu, the director of the survey of consumers, said in a statement Friday.
“Still, December’s reading on expected personal finances is nearly 12% below the beginning of the year,” Hsu continued. “Similarly, labor market expectations improved a touch but remained relatively dismal.”
Sentiment gains were driven by younger consumers, Hsu said, rising 4.5% from November.
Consumers expect prices to rise at a rate of 4.1% over the next year, the lowest reading since January and down from the expected 4.5% rate last month, the survey showed.
Hsu noted that consumers still don’t necessarily feel positive, saying the “overall tenor of views is broadly somber, as consumers continue to cite the burden of high prices.”
