Consumer Confidence Index Jumps to 6-Month High

A new report from Thomson Reuters and the University of Michigan has found that consumers are feeling a lot better about labor conditions and the economy as a whole. As a result, the consumer confidence index rose to its highest level in six months in early December.

Consumer Confidence Index Climbed 4 Consecutive Months

The Thomson Reuters/University of Michigan preliminary reading on their overall index of consumer confidence rose for a fourth straight month to 67.7. This is a notable jump compared with 64.1 in November and a low of 55.7 back in August.

The figures for December exceeded the 65.5 index figure predicted by analysts and serves as an indicator that Americans are feeling good about recent economic developments.

Survey director Richard Curtin said in a statement, “Reports of net job growth have increased in each of the past three months, as have assessments of current conditions in the economy.” As a result, measures of consumers’ current and future assessment of economic and financial conditions jumped to their highest level since June.

U.S. Economy Sees Some Improvement

The consumer confidence index report is a pleasant surprise, especially after many felt strong disappointment with the future of the economy after the debt “super committee” failed to create a debt reduction plan by its pre-Thanksgiving deadline.

In fact, the survey’s barometer of current economic conditions actually edged up to 77.9 in early December from 77.6 in November.

The improved outlook on the nation’s economy could be attributed to lawmakers’ insistence to push for a payroll tax cuts extension–even if they may be struggling to come to an agreement at the present moment. Also, lawmakers are working to extend unemployment benefits with knowledge that failure to do so could result in over one million unemployed individuals losing their payments in January.

Reuters found that consumer expectations jumped to 61.1 in December from 55.4 in November–a huge increase from analysts’ expectations of 57.5 for the month–so if lawmakers are able to show they can come to partisan deals to keep tax cuts and unemployment benefits, consumers may feel even more confident in the state of the economy.