Consumer Sentiment at 8-Year High

Economists polled by Bloomberg had expected a final November reading of 89.5.

The index jumped on the strength of respondents’ views of both current conditions and expectations. The current conditions index rose from a November reading of 102.7 to 105.7, the highest level since February 2007. The consumer expectations index rose from 79.9 to 86.1, the highest since January 2007.

Economists had forecast a current conditions reading of 101.4 and an expectations reading of 80.5.

The survey’s one-year inflation expectation rose from 2.8% to 2.9%, and the five-year inflation expectation index rose from 2.6% to 2.9%, as well.

The survey’s director, Richard Curtin, said, “Expected wage gains rose to their highest level since 2008, and consumers voiced the most favorable buying attitudes in several decades.”

Last month, Curtin noted that total consumer spending could be expected to increase by 2.9% in 2015.

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