The consumer sentiment index in the United States increased in December to a near eight-year high due to the improved job prospects and wages, while the lowering prices of gasoline also encouraged the consumers, according to a survey which was released on Friday.
The preliminary reading of Thomson Reuters /University of Michigan on the overall consumer sentiment index for the month of December came in at 93.8, which is the highest reading since January 2007. Moreover, the figures were above the median forecast of 89.5 among the 70 economic experts who were polled by the news agency Reuters. The final reading for November was 88.8.
The gauge of consumer expectations in the survey surged to 86.1 from 79.9, the highest level since January 2007, beating the 80.5 forecast.
The barometer of current economic conditions of survey increased to 105.7 from 102.7, above the 101.4 forecast. This was the highest level since February 2007.
In a statement, survey 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.”
The one-year inflation expectation of the survey increased to 2.9 percent from 2.8 percent, but its five-year inflation outlook also surged to 2.9 percent from 2.6 percent in November.