The final UMich Index of Consumer Sentiment reading for December was 74.0, an increase of 3.1% MoM and 6.2% YoY. The Current Economic Conditions index jumped 17.5% MoM to 75.1, and the Index of Consumer Expectations fell -4.7% MoM. The headline reading was the highest since April. Decisions to make major purchases appear to have been pushed forward to avoid the potential for price hikes from tariffs.

Inflation expectations did ease from the increases seen in the early data, but there was still an 0.2 ppt increase in year-ahead price expectations to 2.8%. Five-year ahead price expectations actually eased from 3.2% to 3.0%.