We’re all a bunch of optimistic Spendy McSpendersons lately, according to a new survey that says consumer sentiment is remaining high in the new year. As more jobs are being created, consumers have lifted their collective spirits for the fifth consecutive month.
The Financial Times cites the results of the Thomson Reuters/University of Michigan index, which say we’re at our highest level since May with a score of 74 for consumer sentiment. Sure, that’s well below the 89 we had in late 2007, but progress is progress, right?
“More frequent mentions of rising employment lessened income uncertainty and prompted more favourable buying attitudes as well,” Richard Curtin, survey director, said. “The data suggest a stronger consumer spending outlook, rising to about a 2.1 per cent gain in 2012.”
Opening our wallets to spend during the holiday season pushed consumer credit up for the biggest rise in a decade, to $20.4 billion in November. Even though retail sales for December weren’t as good as predicted, we should still continue to ride the good economic feelings as the unemployment rate continues to fall.
This calls for a nationwide dance party.
US Consumer sentiment strongest since May [The Financial Times]