Consumer sentiment improved in December and hit its highest level in six months. This is a sign Americans are starting to fell better about the economy heading into the new year.
The Thomson Reuters/University of Michigan’s index on consumer sentiment rose to 69.9 in December, up from 64.1 in November. Most economists were expecting 68 in December ad the preliminary figure was a little lower at 67.7. The survey’s rating for current economic conditions rose 79.6 from 77.6. Nearly one third of respondents to the survey expect good economic times in the year ahead, up from 19 percent in November. Many consumers had a positive sentiment towards the economy after hearing about employment gains. They do not expect to see a drop in the unemployment rate though.
It wasn’t all positive thinking though as consumers do not expect any income increase next year.
The markets haven’t really reacted to this news or the positive jobs data this morning. As the holiday weekend approaches the market is slowing down and we can expect light volume as traders head home for Christmas. The major indices are up slightly this morning with the Dow adding 32 points, the Nasdaq is up 13 points and the S&P up 5 points.