Consumer Sentiment On The Rise

Consumer sentiment is on the rise going into the final shopping days of Christmas, up 8 tenths from the December flash to a higher-than-expected final December reading of 92.6. The implied level in the final half of the report is in the mid-93 area which would be the strongest pace since way back in June. And in a sign of specific strength for December, the current conditions component is up 1.1 points from mid-month to 108.1 which is nearly 4 points over November. The expectations component, however, is flat, at 82.7 vs November's 82.9 and indicating caution over the jobs outlook. Inflation readings are very soft, unchanged from mid-month at 2.6 percent for both the 1- and 5-year outlooks. This report will make good reading for the nation's retailers as consumers, who are flush with cash based on this morning's personal income & spending report, make their final spending rush.

Recent History Of This Indicator:
Consumer sentiment bounced back in the December flash report, to 91.8 for a 5 tenths gain over the final November reading. Another 2 tenths gain to 92.0 is expected for the final December reading. Strength has been in the current conditions component which is good news for the holiday shopping outlook, offsetting weakness in the expectations component where optimism on the jobs outlook, despite ongoing strength in the labor market, has been softening. Inflation expectations have been very subdued.