US Consumer Sentiment: Another solid rise - Wells Fargo

Analysts from Wells Fargo point out that US Consumer sentiment posted another solid rise in December and explained that inflation expectation remained low. 

Key Quotes: 

“Consumer sentiment rose for the second month in a row in December. While consumers’ assessment of current conditions fell slightly, their expectations of future economic conditions improved, climbing 0.6 points.”

“While hard economic data continues to point toward firming inflation, consumers’ expectations of inflation one year and 5- 10 years ahead fell slightly to 2.2 and 2.3 percent, respectively.”

“The number of survey respondents who reported that they expect higher income over the next year rose to 50.4 percent, the highest reading since December of 2015.”

“Greater income growth prospects for consumers serves as a good leading indicator of real spending activity. We expect real spending activity will continue to serve as a solid support to GDP growth in 2017, expanding around 2.6 percent.”