WASHINGTON (MNI) – U.S. consumer sentiment fell further in early
December, with broad declines indicating a continued and widespread
dampening in optimism, according to the University of Michigan Consumer
Sentiment survey released Friday.

The preliminary reading of the December consumer sentiment index
was below expectations, coming in at 74.5 compared to 82.7 in November’s
report. December’s flash reading was the lowest since 74.3 in August.
The index came in at 82.6 in October and 78.3 in September.

The index’s measure of how consumers view current conditions fell
to 89.9 vs. 90.7 in November, and 88.1 in October. The index was at 85.7
in September, and 88.7 in August’s report.

The initial gauge of consumers’ expectations regarding future
conditions saw a sharp drop to 64.6 — also the lowest since August —
from 77.6 reported last month. This index came in at 79.0 in October,
73.5 in September and 65.1 in August.

Preliminary 1-year inflation expectations for December rose to 3.3%
compared to expectations of 3.1% in November. October’s expectation was
3.1%, September 3.3%. Five-year inflation expectations are at 2.9%, up
from last month’s 2.8%. October’s expectation was for 2.7%.

The preliminary reading of December consumer sentiment came in
below the median expectation of 83.0 in MNI’s survey of economists. The
final report for December will be released on Dec. 21.

** MNI Washington Bureau: 202-371-2121 **

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