Improving job and wage prospects lifted the Thomson Reuters/University of Michigan Consumer Sentiment December Index to its most favorable level since its last cyclical peak in January 2007. The Conference Board Consumer Confidence Index reversed its November retreat based on a more favorable estimate of current business and labor market conditions.
The Consumer Sentiment Index increased to 93.6 in December from 88.8 in November and 82.5 during the same month a year ago. Consumers reported hearing more positive economic developments than any other time in the last thirty years. The survey reported consumers anticipated a significant increase in their incomes in 2015.
The Conference Board Consumer Confidence Index increased to 92.6 in December from an upwardly revised 91.0 in November. The Present Situation Index soared to its highest level since February 2008.