Univ. of Michigan Prelim. Consumer Sentiment Index Outpaced Expectations at 98.2 in Jan.

(Updated - January 16, 2015 11:49 AM EST)

January U of Mich Sentiment 98.2 vs 94.1 Expected

Consumer confidence rose in early January to its highest level in a decade. Gains in employment and incomes as well as declines in gas prices were cited by record numbers of consumers. More consumers spontaneously cited increases in their household incomes in early January than anytime in the past decade, and more households reported unprompted references to favorable employment prospects as well as lower prices than at any other time in the more than the half-century history of the surveys. While it may be true that consumers have allowed the confluence of more jobs, higher wages, and lower gas prices to fuel a run-up in optimism that may be hard to sustain in the months ahead, even a small retrenchment would have little impact on an expected gain of 3.0% in real consumer expenditures in 2015.

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