U.S. Michigan consumer sentiment improved to 53.3 in early December 2025 from 51 in November, still pessimistic but above expectations as a better medium‑term outlook and lower inflation fears lifted the expectations index to 55, while current conditions slipped to 50.7 amid still high living costs, especially housing rents. At the same time, PCE inflation slightly up to 2.8% YoY in September 2025 from 2.7% YoY in August 2025, driven by stronger goods prices with non‑durables up 1.7% YoY, while services inflation eased to 3.4% YoY as healthcare and hospital costs moderated, suggesting overall price pressures are gradually rotating from services back toward goods.