Consumer Sentiment Rose 3.7% to 52.9 in December

Ann Arbor, MI, December 19, 2025-Consumer sentiment rose 3.7% to 52.9 in December, according to final results from the University of Michigan Survey of Consumers.

This represents a 28.5% decline year over year.

“Consumer sentiment confirmed its early month reading, inching up less than two index points from November, within the margin of error,” according to Survey of Consumers director Joanne Hsu. “While lower-income consumers posted gains, sentiment for higher-income consumers was little changed. Buying conditions for durable goods fell for the fifth straight month, whereas expectations for personal finances and business conditions rose in December. Labor market expectations lifted a bit this month, though a solid majority of 63% of consumers still expects unemployment to continue rising during the next year. Despite some signs of improvement to close out the year, sentiment remains nearly 30% below December 2024, as pocketbook issues continue to dominate consumer views of the economy. 

“Year-ahead inflation expectations decreased for the fourth consecutive month to 4.2%. This is the lowest reading in 11 months but is still above the 3.3% seen in January. Long-run inflation expectations eased from 3.4% last month to 3.2% in December, matching the January 2025 reading. In comparison, readings ranged between 2.8 and 3.2% last year, and were below 2.8% throughout 2019 and 2020.”