The Michigan Consumer Sentiment Index saw a slight increase, with young people remaining optimistic, but inflation expectations are still higher than at the beginning of the year.

[BlockBeats] According to the latest data from the University of Michigan, the consumer confidence index rose to 53.3 in early December, up 2.3 points from last month. However, to be honest, this increase is basically within the margin of statistical error.

Interestingly, this growth is mainly driven by young people. Joanne Hsu, director of consumer surveys, pointed out that while people’s views on the current economic situation haven’t changed much, they are a bit more optimistic about the future—their personal financial expectations jumped by 13%. No matter your age group, income level, or political stance, things are moving in a better direction.

But don’t get too excited yet. Compared to the beginning of the year, December’s personal financial expectations index is still nearly 12% lower. Although job market expectations have slightly improved, they remain generally sluggish. Most people are clear about their attitude: things are just a bit better than last month, but overall, caution is still needed, especially since high prices continue to be a burden.

There was a bit of a surprise in inflation expectations: one-year inflation expectations fell from 4.5% in November to 4.1%, the lowest since January 2025, marking four consecutive months of decline. However, compared to January’s 3.3%, short-term pressure remains significant. Long-term inflation expectations fell from 3.4% to 3.2%, staying flat with the beginning of the year.