US Consumer Confidence Rises to 53.3 in December 2025

The Consumer Sentiment Index in the United States saw a notable rise of 4.5% in December, reaching a preliminary reading of 53.3, according to a report released by the University of Michigan on Friday. This figure exceeded analysts' forecasts, which had anticipated a reading of 52, although it reflects a significant decline of 28% compared to the same month in the previous year.

In December, the Current Economic Conditions Index experienced a slight decrease of 0.8%, settling at 50.7. This represents a year-on-year drop of 32.5%. Conversely, the Index of Consumer Expectations recorded an increase of 7.8% compared to November, although it is down by 25% from December 2024, bringing it to a level of 55.

The report highlighted that the Consumer Sentiment Index had fluctuated in recent months, with long-term expectations declining for three consecutive months through July, followed by a period of small increases. However, recent readings indicate that long-term expectations have softened again in the past two months, remaining well below the peaks observed in June 2022 and April 2025. Despite this, the December reading is higher than most figures from 2024 and earlier years.

Joanne Hsu, Director of the Surveys of Consumers, commented on the findings: "Consumer sentiment lifted 2.3 index points in early December, within the margin of error. This month’s increase was concentrated primarily among younger consumers."

The mixed results of the latest index highlight ongoing challenges faced by consumers. While inflation expectations have decreased, many individuals are still grappling with the effects of high prices on their everyday lives. Year-ahead inflation expectations fell from 4.5% in November to 4.1% in December, marking the lowest level since January 2025. This decline signifies four consecutive months of reducing inflation expectations, although short-term expectations remain above the 3.3% recorded earlier in the year.

Long-term inflation expectations also saw a reduction, dropping from 3.4% to 3.2%, which aligns with the January 2025 reading. In comparison to previous years, inflation expectations in 2024 ranged from 2.8% to 3.2%, while readings in 2019 and 2020 were below 2.8%.

Despite some positive indicators, the overall sentiment among consumers remains cautious. The report from the University of Michigan underscores the complexities of the current economic landscape, where improvements in consumer expectations coexist with persistent concerns about inflation and living costs.