Current economic conditions improved from 63.9 in November to 75.1 in December, while the Consumer Expectations Index fell from 76.9 to 73.3.
Inflation expectations for the coming year rose from 2.6% in November to 2.8% in December. Nevertheless, inflation expectations for the coming year remained within the range of 2.3% to 3.0% in the two years leading up to the pandemic.
Meanwhile, long-term inflation expectations fell from 3.2% in November to 3.0% in December.
The University of Michigan noted: “Overall, consumers believe the economy has improved significantly as inflation has declined, but they do not feel they are thriving; Sentiment is currently about halfway between the all-time low reached in June 2022 and pre-pandemic numbers.”
The US Dollar Index moved towards lows following the release of the Michigan Consumer Sentiment report. Currently, the US Dollar Index is trying to settle below the 108.00 level.
Gold climbed above the $2620 level as traders focused on the US dollar’s pullback and falling government bond yields.