Consumer Sentiment Misses Expectations in December, But Ticks Higher

(Photo: Reuters)

The University of Michigan preliminary December sentiment index rose to 91.8 from a final November reading of 91.3, slightly missing the median forecast. Economists surveyed by The Wall Street Journal had predicted the early December index would rise to 92.0.

“While the preliminary December reading was largely unchanged from last month, consumers evaluated current economic conditions more favorably and expected future prospects less favorably,” said Richard Curtin, the survey’s chief economist.

Consumer spending accounts for roughly two-thirds of overall economic output in the U.S., but data hasn’t shown consumers eager to use the money saved for falling gasoline prices to boost retail sales data. The Commerce Department reported on Friday that retail sales gained 0.2% in November, slightly missing the median forecast calling for a 0.3% increase. Retail sales representing roughly one-third of that total spending.