Expert sounds alarm as consumer sentiment hits 'new all time low' dating back to the 70s

Consumer sentiment data shows that it increased in December, but by less than expected.

The University of Michigan’s final December sentiment index increased at the end of 2025 by 1.9 points to 52.9, according to a report released Friday said, cited Bloomberg.com.

Bloomberg said that its survey of economists called for a reading of 53.5.

“Despite some signs of improvement to close out the year, sentiment remains nearly 30 percent below December 2024, as pocketbook issues continue to dominate consumer views of the economy,” said Joanne Hsu, director of the survey.

It means that the "conditions gauge" slipped to 50.4 points, despite expectations being at a four-month high.

"Consumers’ perception of current buying conditions for big-ticket items deteriorated to the lowest on record," said the report.

Speaking to CNBC's "Squawk on the Street," Rick Santelli said he has data going back to the 1970s and things aren't looking good.

"So, the mid-month read gets tossed, 53.3 was the mid-month read on the headline. It now moves lower to 52.9. That would be the weakest since it was 51 in November. And I'd like to point out that if you look at the absolute low, it is 50 from June of 22. We're not far away from the low," Santelli warned.

"Now, if we look at current conditions, same dynamic 50.7 mid-month becomes 50.4 and 50.4 is a new all time low, replacing the 50.7. Also, my database goes back into the 1970s. Look at expectations. Same dynamic," he added.

"Mid-month 55 now becomes 54.6, and 54.6 would be the weakest since November, when it was 51. And finally, on the inflation front. Well, 4.2 replaces 4.1. it's one tenth hotter on the one year inflation. On the 5 to 10 year inflation rate. It remains the same at 3.2 percent," Santelli rattled off.

The news comes after economists questioned November inflation data showing that inflation fell.