Consumer Confidence in the Economy Picks Up in December

U.S. consumer sentiment increased for a fifth consecutive month in December. Driven by consumers’ perception of current economic conditions, the University of Michigan’s Consumer Sentiment index increased to 74 in December 2024, up 3.1% from November and 6.2% ahead of December 2023. This marked the highest consumer sentiment index reading since April 2024. In 2022, consumer sentiment hit near 30-year lows as inflation climbed to a 40-year high and the Federal Reserve started hiking interest rates to combat that increase. More recently, with inflation under control, the Fed has been cutting interest rates, with December marking the third cut of the year. Improved consumer sentiment is good news for the U.S. apartment market, as consumer confidence in the economy tends to stimulate apartment demand.