A report from the University of Michigan revealed on Friday the preliminary reading for the Reuters/Michigan index of consumer sentiment increased 5.9 percent m-o-m to 81.4 in early December. 

Economists had expected the index would drop to 76.5 this month from November’s final reading of 76.9.

According to the report, the index of current U.S. economic conditions rose 5.5 percent m-o-m to 91.8 in December from 87.0 in the previous month. Meanwhile, the index of consumer expectations surged 6.0 percent m-o-m to 74.7.3 this month from 70.5 in Nonember.

“Consumer sentiment posted a surprising increase in early December due to a partisan shift in economic prospects”, noted Surveys of Consumers chief economist, Richard Curtin“. Following Biden's election, Democrats became much more optimistic, and Republicans much more pessimistic, the opposite of the partisan shift that occurred when Trump was elected,” he added.