The Michigan Sentiment — aka the Thomson Reuters/University of Michigan Index of Consumer Sentiment — jumped more than expected for November, meaning consumers are starting to feel a bit better about the economy. It’s good news for a Friday, for sure.
The Thomson Reuters/University of Michigan preliminary index of consumer sentiment climbed to 64.2 this month, the highest since June, from 60.9 in October. The median estimate of economists surveyed by Bloomberg News called for a reading of 61.5.
Fewer claims for jobless benefits that culminate in more hiring may also bolster confidence at a time when Europe’s debt crisis poses a risk to global growth and prompts stock-market volatility. Sustained gains in household sentiment, which has been lingering at levels seen during the last recession, may bolster consumer spending that accounts for about 70 percent of the economy.
“It’s good news that we’re finally starting to get an improvement in confidence because it’s long overdue,” said Robert Brusca, chief economist at Fact & Opinion Economics in New York.