Topline
Views on the U.S. economy improved among Americans in December, the first boost since July despite settling near historic lows, according to a widely tracked survey released Friday by the University of Michigan.
Consumers expressed a more optimistic outlook on personal finances and rising prices.
Copyright 2025 The Associated Press. All rights reserved.
Key Facts
Consumer sentiment—a monthly assessment of Americans’ views on the economy—rose to 53.3 in December from 51 in November, which neared the all-time low set in 2022, a reading of the University of Michigan’s study found.
December’s reading surpassed Wall Street’s estimates of 52.
The measurement also remained below the historical benchmark of 100: Any value below 100 indicates growing economic pessimism among Americans, while a reading above—which last occurred in 2018—suggests broader optimism.
Consumer sentiment last improved month-to-month in July, when the measurement jumped from a revised-up reading of 60.7 in June to 61.8.
Why Did Economic Confidence Improve?
Joanne Hsu, the survey’s director, attributed December’s boost to consumer sentiment to an optimistic outlook for personal finances and inflation. Americans now expect prices to increase by 4.1% over the next year, down from 4.5% last month and the lowest level since January, while the outlook for finances rose to the highest level since February. Hsu noted that job market expectations also improved “a touch,” but “remained relatively dismal,” and while the “overall tenor of views is broadly somber,” consumers are still citing the “burden of high prices.” Last month, Hsu said Americans continued to be “frustrated about the persistence of high prices and weakening incomes” and their personal finances were “weighed down” by current price tags.
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Source: https://www.forbes.com/sites/tylerroush/2025/12/05/economic-confidence-near-historic-lows-improves-for-first-time-since-july/
