UoM Consumer Confidence final reading improves to 98.5 from 97.8

Index of Consumer Sentiment released by the University of Michigan rose slightly to 98.5 from 97.8 in its final reading in November, surpassing the market estimate of 98.

Key highlights from the official report

Consumer sentiment narrowed its loss from mid-month, although it was still slightly below last month's decade peak.

Overall, the Sentiment Index has remained largely unchanged since the start of the year at the highest levels since 2004. 

 Inflation expectations have shown the smallest dispersion on record, and increased certainty about future income and job prospects has become a key factor that has supported discretionary purchases. 

The data indicate that neither changes in fiscal nor monetary policies have yet had any noticeable impact on consumer expectations.

The data signal an expected gain of 2.7% in real consumption expenditures in 2018.