A
report from the University of Michigan revealed on Friday the preliminary
reading for the Reuters/Michigan index of consumer sentiment rose 4.5 percent
m-o-m to 70.4 in early December.
Economists
had expected the index would come in at 67.1 this month, slightly down from December’s
final reading of 67.4.
According
to the report, the index of current U.S. economic conditions increased 1.4
percent m-o-m to 74.6 in this month. Meanwhile, the index of consumer
expectations surged 6.8 percent m-o-m to 67.8.
Surveys
of Consumers chief economist, Richard Curtin, noted that “a small overall gain”
in consumer sentiment in early December was mainly due to an increase among
households with incomes in the lowest third (+23.6 percent) of the income
distribution, which reflected expectation of a 2.9 percent income rise during
the year ahead.