The Consumer Is Confident

American consumers are feeling pretty good.

The University of Michgan’s consumer sentiment index climbed to 93.6 in December from 88.8 in November.

While this was down from the preliminary December estimate of 93.8, it was nevertheless stronger than the 93.5 forecast by economists.

This was also the best reading since January 2007.

“Consumers held the most favourable long-term prospects for the national economy in the past decade,” said Richard Curtin, the survey’s director via Reuters. “Importantly, the 2014 gains in jobs and wages were widespread across all population subgroups and regions.”

The report reflects a period of elevated stock market volatility. But gasoline prices had also been tumbling, which consumers feel immediately.

 

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