(CercleFinance.com) – US consumer sentiment improved in December despite confirmation of inflationary pressures, the first results of the University of Michigan’s monthly survey show Friday.
Its confidence index rose to 70.4 this month after 67.4 in November, when economists on average forecast a figure of 68.
Richard Curtin, the director of the survey, explains this progression by a renewed optimism on the side of the poorest households, which he attributes to the prospect of a rise in wages next year against a backdrop of inflationary pressure.
‘This suggests the emergence of a spiral of wage and price increases that could propel inflation upwards in the years to come,’ he warns.
The survey component measuring consumers’ judgment on the current situation reached 74.6, up from 73.6 last month. That of expectations has also increased, to stand at 67.8 after 63.5 in November.
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