The Thomson Reuters/University of Michigan Consumer Sentiment Index rose from a final October reading of 86.9 to a final November reading of 88.8, down from the preliminary November reading of 89.4. The final November index is still the highest reading since June 2007.

Economists polled by Bloomberg were expecting a final November reading of 90.

The index jump was nearly entirely due to respondents view of the economy’s current conditions. That part of the index rose from 98.3 in October to 102.7. In November of 2013 the current conditions index reading was 88. This may be good news for retailers as we head into the holiday shopping season.

Consumers also held the most favorable long-term outlook on the U.S. economy since the last cyclical peak in January 2007. Consumers’ views on durable goods purchases are at a 7-year high and vehicle-buying attitudes have hit a 9-year high.

U.S. consumers expect incomes to rise 1.1%, the highest amount since November 2008 and those under the age of 45 expect income gains of 4.2%.

The survey’s director, Richard Curtin, said:

In the past few years, renewed consumer optimism has been repeatedly thwarted by partisan bickering. The debt-ceiling debacle, the fiscal cliff and the government shutdown have repeatedly soured economic optimism. The renewed confidence consumers have expressed must be nurtured, not again held hostage to partisan differences.

Based on recent data, consumer spending is poised to make 2015 the best year for the economy since 2005. To accomplish this outcome, the president and congress must dial back the rhetoric and expand their common ground in promoting the continuation of robust gains in jobs and wages in the year ahead.

Curtin also noted that total consumer spending can be expected to increase by 2.9% in 2015.

ALSO READ: What the Preliminary GDP Reading Means for the Holidays

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.