ANN ARBOR, Mich. — Americans’ feelings about the economy are continuing to improve, a new survey finds. 

What You Need To Know

  • Consumer sentiment rose for the fifth consecutive month in December

  • It increased 3% to its highest reading since May, according to preliminary results of the University of Michigan Surveys of Consumers

  • Republicans' feelings improved the most, while they declined the most among Democrats, who cited concerns about President-elect Donald Trump's proposed tariff hikes leading to inflation

  • Among all survey respondents, consumers expect inflation will rise to 2.9% a year from now — the highest reading the survey has registered in six months

Consumer sentiment rose for the fifth consecutive month in December, increasing 3% to its highest reading since May, according to preliminary results of the University of Michigan Surveys of Consumers released Friday.

Expectations about the U.S. economy’s future improved for Republicans, one month after Donald Trump won this year’s presidential election. They declined for Democrats, who cited concerns about Trump’s proposed tariff hikes leading to inflation.

Among all survey respondents, expectations for inflation in the coming year increased. Most respondents anticipate inflation will rise to 2.9% a year from now — the highest reading the survey has registered in six months. Longer-term inflation expectations dropped slightly to 3.1% in December from 3.2% a month earlier.

“Despite bumps along the way, consumer sentiment about the economy has been rising since mid-2022, when it hit an all-time low,” NerdWallet Senior Economist Elizabeth Renter said in a statement responding to the University of Michigan consumer survey results. “Since then, it’s been somewhat divorced from official economic data, which says the economy is strong and growing, though this gap is closing as sentiment improves.”