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Industry News

Index of consumer sentiment climbs in December

By Louis Georgakakis

22/12/2011 - Consumer confidence rose to the highest level in six months in December, reflecting a general uptick in business sentiment and U.S. economic activity.

The Thomson Reuters/University of Michigan final index of consumer sentiment climbed from 64.1 points at the end of November to 69.9 in December, surpassing expectations of 68 predicted by a number of economists polled by Bloomberg.

However, the index remains well below pre-recession figures, which averaged 89 points in the five years leading up to the recession beginning in December of 2007.

Analysts cited a slight decrease in unemployment, lower commodity prices and the holiday shopping season as driving much of the boost.

"Spending has looked pretty good so far, and continued job and income growth will help maintain that," Samuel Coffin, an economist at UBS Securities in New York, told Bloomberg. "At some point, events in Europe are likely to have some effect on activity, but we're heading into that headwind with a lot of momentum."

The report bodes well for the retail sector, which has been swamped with cash revenue and credit card processing as a result of the holiday season.

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