{"id":1442886,"date":"2023-12-08T15:11:45","date_gmt":"2023-12-08T20:11:45","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1442886"},"modified":"2023-12-08T15:11:45","modified_gmt":"2023-12-08T20:11:45","slug":"umich-inflation-expectations-collapsed-in-december-repuboicans-drive-surge-in-sentiment","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/umich-inflation-expectations-collapsed-in-december-repuboicans-drive-surge-in-sentiment\/1442886\/","title":{"rendered":"UMich Inflation Expectations Collapsed In December; Repuboicans Drive Surge In Sentiment"},"content":{"rendered":"

UMich Inflation Expectations Collapsed In December; Repuboicans Drive Surge In Sentiment<\/span><\/p>\n

\n

UMich inflation expectations (one year ahead) collapsed<\/strong> to 3.1% in preliminary December data after soaring to 4.5% in November. Medium-term inflation expectations also tumbled from 3.2% to 2.8%.<\/p>\n

That is the lowest one-year inflation expectation since March 2021<\/strong>.<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Who could have seen that coming?<\/p>\n

Remember when UMich inflation expectations unexpectedly surged? Well, they are about to plunge or someone is lying pic.twitter.com\/sjDSZqn5ki<\/a><\/p>\n

\u2014 zerohedge (@zerohedge) November 28, 2023<\/a><\/p>\n

Back to reality…<\/p>\n

<\/a><\/p>\n

Consumer sentiment soared 13% in December, erasing all declines from the previous four months,<\/strong> primarily on the basis of improvements in the expected trajectory of inflation.<\/p>\n

The headline jumped from 61.3 to 69.4 with current conditions spiking from 68.3 to 74.0 and expectations jumping from 56.8 to 66.0…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Sentiment is now about 39% above the all-time low measured in June of 2022 but still well below pre-pandemic levels.<\/p>\n

All five index components rose this month,<\/strong> led by surges of over 24% for both the short and long-run outlook for business conditions.<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

There was a broad consensus of improved sentiment across age, income, education, geography, and political identification. <\/strong><\/p>\n

A growing share of consumers – about 14% – spontaneously mentioned the potential impact of next year\u2019s elections. Sentiment for these consumers appears to incorporate expectations that the elections will likely yield results favorable to the economy.<\/p>\n

The index of economic news heard reached its most favorable reading since 2021,<\/strong> supported by huge improvements among higherincome consumers, college-educated consumers, and Republicans<\/strong>.<\/p>\n

<\/a><\/p>\n

So sentiment up (Fed won’t want animal spirits) but inflation expectations collapsing (Fed mission accomplished?)<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nFri, 12\/08\/2023 – 10:11<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/personal-finance\/umich-inflation-expectations-collapsed-december-repuboicans-drive-surge-sentiment<\/a>\u00a0<\/p>\n

\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

UMich Inflation Expectations Collapsed In December; Repuboicans Drive Surge In Sentiment UMich inflation expectations (one year ahead) collapsed to 3.1% in preliminary December data after…<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-1442886","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-63mm","jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1442886","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1442886"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1442886\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1442886"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1442886"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1442886"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}