U.S. consumer sentiment edged up in December but stayed well below last year’s levels as households continued to worry about high prices and weakening labor markets, the University of Michigan has said.
The index rose to 52.9 from 51 in November, but was nearly 30% lower than December 2024’s reading of 74.
The Current Economic Conditions Index slipped to 50.4 from 51.1, while the Expectations Index climbed to 54.6 from 51. Both remained far below year‑ago levels.
Survey director Joanne Hsu said 47% of consumers cited high prices as weighing on their finances, unchanged from November and well above the 35% a year earlier. Concerns about tariffs and inflation also persisted.
About 63% of respondents expected unemployment to worsen in the year ahead, compared with 40% last December.
Hsu said fears of “catastrophic inflation” sparked by tariff hikes earlier in 2025 have eased, but consumers still expect elevated inflation to erode their purchasing power.