Significant Jump in Michigan Consumer Confidence in December

• Consumer Sentiment rose from 61.3 in November to 69.7 in December.
• Current Economic Conditions improved from 68.3 to 73.3.
• Index of Consumer Expectations increased from 56.8 to 67.4.  

On December 22, the University of Michigan published the final results of the Michigan Consumer Sentiment report for December. The report revealed that Consumer Sentiment improved from 61.3 in November to 69.7 in December, surpassing the analyst consensus of 69.4.

Current Economic Conditions rose from 68.3 in November to 73.3 in December, while the Index of Consumer Expectations increased from 56.8 to 67.4.

The University of Michigan remarked, “Consumer sentiment confirmed its mid-month reading and surged by 14% in December, completely reversing the declines seen in the previous four months. These trends reflect significant improvements in consumers' perceptions of the inflation trajectory.”

Additionally, today, traders had the opportunity to review the New Home Sales report for November, which indicated a 12.2% decline on a monthly basis, contradicting the analyst consensus of +1.2%.

Following the report, the U.S. Dollar Index settled near 101.50. Traders continue to believe that the Fed will likely commence rate cuts in the first half of next year.

Gold reached multi-week highs at $2070, supported by a weakened dollar. A weakened dollar provides substantial backing to gold and other precious metals.

The S&P 500 index continued its efforts to secure levels above 4780. The better-than-expected Consumer Sentiment report may offer additional support to equity markets.