NEW YORK, Dec. 6 (Xinhua) -- The preliminary December consumer sentiment index climbed to 74 from 71.8, the highest since April, according to the University of Michigan, while the median estimate in a Bloomberg survey of economists called for a reading of 73.2.
"Consumers expect prices to rise at an annual rate of 2.9 percent over the next year," said Bloomberg News in its report on Friday. "And they saw costs rising at an annual rate of 3.1 percent over the next five to 10 years, compared with 3.2% in the prior month."
A gauge of sentiment among Republicans now stands at a four-year high following President-elect Donald Trump's win, while confidence among Democrats has dropped to a more than two-year low, according to the report. Among political independents, sentiment rose to an eight-month high.
Economists have warned that some of Trump's policies, including his proposals on tariffs, could cause higher inflation. In anticipation of higher prices, consumers viewed current buying conditions for durable goods as the most favorable since April 2021, said the report.
"One quarter of respondents spontaneously reported that buying big-ticket merchandise now would avoid higher prices in the future. That helped drive a gain in the university's measure of current conditions," it added.
