·
The University of Michigan's reading of consumer sentiment for
the full month of December rose to 97.1, up 4.6% from November.
Consensus expectations had expected 95.7.
· During the last ten years there has been a 75% correlation between the level of consumer sentiment and the y/y change in real PCE.
· Consumers' reading of current economic conditions rose 1.9% m/m but consumer expectations jumped 6.7%.
· Sentiment amongst families earning less than $50,000 per year surged 9.5% m/m (5.3% y/y. Consumer sentiment amongst families earning more than $50,000 per year fell slightly m/m but rose 2.0% y/y.
· The University of Michigan survey is not seasonally adjusted. The mid-month survey is based on telephone interviews with 250 households nationwide on personal finances and business and buying conditions. The survey is expanded to a total of 500 interviews at month end.
· "Consumer Sentiment and the Media" from the Federal Reserve Bank of San Francisco can be found here.