Consumers Feel Good About Today’s Economy, But Some Are Worried About the Future | Global News Avenue

Consumer confidence improved for the fifth consecutive month in December, reaching its highest level since April. However, the data also showed that some people may be nervous about possible economic changes next year.

this Michigan Consumer Confidence Index The preliminary reading for the December survey rose to 74.0, up from 71.8 last month. Economists surveyed Dow Jones Newswires and wall street journal A slight rise to 73.0 is expected.

The increase was driven by rising confidence in current economic conditions, which reached its highest level in eight months. However, forward-looking consumer sentiment Stocks were lower as some expressed concern about rising inflation.

“Buying conditions surge durable goods Current economic conditions have led to a surge of more than 20%,” said survey director Joanne Hsu. “The rise in durable goods is largely driven by the belief that buying durable goods now will protect buyers from future price increases, rather than a sign of strength. ”

Tariff concerns lead to rising inflation expectations

Surveys show consumers expect price pressure to increase. In December, inflation expectations for the next year rose to 2.9% from 2.6%, while long-term inflation expectations edged lower. Fed Officials monitor consumer inflation expectations when interest rate decisions.

Economists say survey results show Democrats largely expect inflation to rise amid inflationary pressures President-elect Donald Trump’s tariff proposalswhile Republicans expect price pressures to ease. It’s not just Republicans who are feeling better about the economy, with the survey showing a nine-point increase in consumer confidence among political independents.

“There is evidence that the election results have given consumers (i.e., those who identify as Republicans) confidence, but consumers overall remain worried about the economy,” Wells Fargo economist Shannon Seery wrote. , especially inflation, and remain cautious about the future,” Grein and Jeremiah Cole.