●Michigan Consumer Sentiment rose to 53.3, beating expectations of 52.0
●Inflation expectations dropped significantly, with 1-year at 4.1% and 5-year at 3.2%
●September Core PCE came in slightly softer than expected at 2.8% YoY
According to reports, the preliminary University of Michigan Consumer Sentiment Index for December rose to 53.3, surpassing the forecast of 52.0. Inflation expectations saw a notable decline, with the 1-year outlook dropping to 4.1% (expected 4.5%) and the 5-year outlook falling to 3.2% (expected 3.6%).
Data for September showed Personal Income rose by 0.4% and Personal Spending by 0.3%, while real personal spending remained flat. The PCE Price Index increased 0.3% month-over-month and 2.8% year-over-year. Core PCE, which excludes food and energy, came in slightly below market expectations at 0.2% month-over-month and 2.8% year-over-year (vs 2.9% expected).