The January 2015 University of Michigan Index of Consumer Sentiment soared to its highest level since January 2004. The Conference Board Consumer Confidence Index also increased sharply, reaching its highest level since August 2007. While three month moving averages smooth these increases, the picture of renewed confidence shines brightly.
The Index of Consumer Sentiment Index increased to 98.1 in January, up from 93.6 in December and 81.2 during the same month a year ago. The Surveys of Consumers reported that gains over the second half of 2014 were as large among households with incomes under $75,000 as over that amount. The results were tempered with consumers reporting that they are counting only on modest income gains during the years ahead.
The Conference Board Consumer Confidence Index increased to 102.9 in January from 93.1 in December. The Present Situation Index leaped to 112.6 in January from 93.1, and the Expectations Index increased to 96.4 in January from 88.5 in December.