Consumer sentiment in the U.S. has unexpectedly deteriorated in the month of December, according to a preliminary report released by Thomson Reuters and the University of Michigan on Friday.
The report showed that the consumer sentiment index tumbled to 74.5 in December from the final November reading of 82.7.
The steep drop by the consumer sentiment index came as a surprise to economists, who had expected the index to inch up to 83.0.
Peter Boockvar, managing director at Miller Tabak, said, "While it's just one measure of consumer sentiment, maybe the constant barrage of back and forth in D.C. with no resolution yet is having an impact."
The sharp drop by the headline index reflected a substantial deterioration in consumer expectations, with the expectations index plunging to 64.6 in December from 77.6 in November.
The reading on current economic conditions showed a much more modest decrease, edging down to 89.9 in December from 90.7 in November.
Meanwhile, the report also said one-year inflation expectations rose to 3.3 percent in December from 3.1 percent in November. The five-to-ten-year inflation outlook inched up to 2.9 percent from 2.8 percent.
by RTT Staff Writer
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