U.S. consumers haven’t felt this good since early 2007.
The University of Michigan/Thomson Reuters Index of Consumer Sentiment updated Tuesday hit 93.6 for December, the highest level it has been since January 2007, before the recession began.
Consumer sentiment matches a number of other indicators suggesting that Americans are finally beginning to relax the pessimism that has set in over the half-decade following the collapse of the housing bubble and ensuing recession.
Rising sentiment about the economy is partially attributable to falling gas prices. Prices at the pump have fallen for a record 88 days in a row, according to AAA.
But the growing confidence in the economy is based on more than just energy prices.
“Importantly, rather than basing their renewed optimism on volatile oil prices, consumers have become convinced that growing strength in the national economy will result in continued gains in jobs and wages during the year ahead,” said Richard Curtin, the chief economist for the survey of consumers used to construct the index.
Survey respondents reported hearing more positive economic news than any time in the past 30 years. They had high expectations for job gains and income growth, according to the survey. Expectations were up among all population sub-groups and regions of the country.
