Consumer Sentiment Highest in Five Months
Consumer confidence rose in December, marking a rebound since the significant decline following the government shutdown, according to the University of Michigan and Thomson Reuters index. An initial assessment in December rose to 82.5, the highest level since July, compared with a final November reading of 75.1, which was higher than consensus expectations of economists. The increase in sentiment will be well received by retailers during the key holiday shopping season. “This rebound in consumer confidence is particularly encouraging as confidence has recently underperformed real consumer spending data,” says analyst Gennadiy Goldberg. “The latest Michigan report suggests that this gap between the indicators is now closing, decreasing downside risks to consumer spending activity.” Reuters’ gauge of consumers’ views on current economic conditions rose to 97.9 in December from 88 in November, while the barometer of their expectations increased to 72.7 from 66.8. Rising consumer sentiment comes in the wake of an unexpectedly strong employment report in November. “The ongoing improvement in the labor market should lead to further gains in coming months,” says economist Jim O’Sullivan.
From “Consumer Sentiment Highest in Five Months”
MarketWatch (12/06/13) Mantell, Ruth