U.S. consumers turned gloomier about the economy through mid-December even as the labor market shows some improvement and stocks have steadily risen, market sources said on Friday.
The University of Michigan's preliminary reading of consumer sentiment fell to 89.6 in December from November’s final reading of 93.7, according to market sources who have seen the report. Economists had forecast a rise to 96.0.
The unexpected decline threw doubt on consumer spending during the holiday season, though measures of confidence have had little link to actual retail sales in recent years.
The current conditions index fell sharply, to 93.6 from 102.5 the prior month, while the expectations index slide to 87.1 from a final reading of 88.1 in November.