Sunday, November 11, 2012
USA Consumer Sentiment Surges to 5-Year High!
USA Consumer Sentiment: Thomson Reuters / University of Michigan
American optimism has surged upwards as the Index of Consumer Sentiment is now at 82.6 (October 2012), the highest reading since September 2007. This hopefulness is well above the long-term average of 75.9, the monthly average from January 2005 through October 2012.
USA Consumer Sentiment by Month
USA Consumer Sentiment by Year
The preliminary October 2012 Index of Consumer Sentiment was 83.1, but the -0.5 adjustment to the final October 2012 reading of 82.6 continued the upsurge.
"The very positive economic expectations of consumers stand in sharp contrast to growing concerns expressed by investors and companies about the impending fiscal cliff as well as the impact of a slowing global economy. While the surge in confidence will act to bolster consumer spending during the upcoming holiday season, it also means that this higher level of optimism is more vulnerable to reversal depending on how and when the fiscal cliff is bridged. The surge in consumer optimism may be largely due to the implied election promises of both candidates that most of the Bush tax cuts and the payroll tax cuts will be promptly extended"
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