Economic Confidence—Near Historic Lows—Improves For First Time Since July

Core Viewpoint - Consumer sentiment in the U.S. improved in December, marking the first increase since July, despite remaining near historic lows, as reported by the University of Michigan [1] Group 1: Consumer Sentiment Data - Consumer sentiment rose to 53.3 in December from 51 in November, approaching the all-time low of 2022 [2] - December's reading exceeded Wall Street's expectations of 52, but remained below the historical benchmark of 100, indicating ongoing economic pessimism [2] Group 2: Factors Influencing Economic Confidence - The increase in consumer sentiment is attributed to a more optimistic outlook on personal finances and inflation, with Americans expecting a 4.1% price increase over the next year, down from 4.5% the previous month [4] - The outlook for personal finances reached its highest level since February, although job market expectations improved only slightly and remained relatively poor [4] - Consumers continue to express frustration over high prices and weakening incomes, which weigh down their personal finances [4]