The Thomson Reuters/University of Michigan Consumer Sentiment Index rose from a final November reading of 88.8 to a preliminary December reading of 93.8. The December index is the highest reading since January 2007.
Economists polled by Bloomberg had expected a final November reading of 89.5.
The index jumped on the strength of respondents’ views of both current conditions and expectations. The current conditions index rose from a November reading of 102.7 to 105.7, the highest level since February 2007. The consumer expectations index rose from 79.9 to 86.1, the highest since January 2007.
Economists had forecast a current conditions reading of 101.4 and an expectations reading of 80.5.
The survey’s one-year inflation expectation rose from 2.8% to 2.9%, and the five-year inflation expectation index rose from 2.6% to 2.9%, as well.
The survey’s director, Richard Curtin, said, “Expected wage gains rose to their highest level since 2008, and consumers voiced the most favorable buying attitudes in several decades.”
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Last month, Curtin noted that total consumer spending could be expected to increase by 2.9% in 2015.
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