Inflation impact on US consumer confidence

Consumer confidence in the US increased above expectations due to the decline in inflation expectations. The University of Michigan announced the Consumer Confidence Index data for December, which it prepared in line with the tendencies of American consumers. Accordingly, Consumer Confidence rose to 69.4. The index had a value of 61.3 in November. The median estimate of economists participating in Bloomberg's survey was 62. Consumer Surveys Director Joanne Hsu stated that consumer confidence increased especially due to improvements in the expected course of inflation. Hsu reported that consumers' short-term inflation expectations decreased from 4.5 percent to 3.1 percent this month, drawing attention to the fact that this rate was the lowest level recorded since March 2021. Hsu also stated that long-term inflation expectations decreased from 3.2 percent to 2.8 percent this month, recording the second lowest level since July 2021. The current conditions index increased by 5.7 points to 74, and the consumer expectations index, which reflects consumers' long-term forecasts, rose to 66.4.