UoM’s Consumer Confidence Index Surges in December

Consumer confidence in the US has strengthened modestly in December according to the University of Michigan’s preliminary estimate of the Consumer Sentiment Index.

The reading of the index surged to 70.4, up compared to only 67.4 in November. This data comes above market expectations at 67.1. In the meantime, the preliminary estimate of the December Consumer Expectations index also rose to 67.8.

The better than expected US consumer sentiment figures for December are reassuring but, so far, did not have any notable impact on the USD.

While better than expected, sentiment remains highly passive by historical standards, better than expected outcome from today’s data could reassure markets that despite growing fears related to the new coronavirus variant the US economy continues to recover which in turn could encourage the FED to change its approach in the near term concerning the QE programme.

On the other hand, worse than expected reports could further incentivize the US central bank to take action, something which may be closely followed by its peers around the world.