Consumer Sentiment Slows

Consumer sentiment slowed in December, down to a final 95.9 which, compared to the mid-month preliminary reading of 96.8, implies a roughly 95 score for the last two weeks for the softest showing since September. But a positive for the holiday shopping outlook is that the current conditions component is firm, at 113.8 vs November's 113.5.

Weakness in December is in expectations which are down 4.6 points to 84.3. Comments on tax reform were split with Republicans calling it a positive and Democrats a negative. Year-ahead inflation expectations, at 2.7 percent, improved 2 tenths vs November with 5-year expectations unchanged at 2.4 percent.

Levels in this report have been edging lower but still remain the best in 17 years in what points to a strong holiday season for consumer spending.

Recent History Of This Indicator:
The consumer sentiment index has been edging back from a 100.7 expansion peak in October but still came in at a very solid 96.8 in the preliminary reading for December. The current conditions component showed special strength in December's first report in what was a positive indication for holiday sales. Econoday's consensus for the final December index is 97.0.