Consumers feeling good about the economy

Consumer optimism rose in January to its highest level in the past decade. That’s according to the University of Michigan Surveys of Consumers which monitor consumer attitudes and expectations. U-M economist Richard Curtin, who directs the surveys, says most of the gains were recorded since mid-2014. The surveys found the gains during the past six months were as large among households with incomes under $75,000 as over that amount. Consumers anticipated that the economy would expand and create new jobs at the best rate in the past decade. Curtin says consumers are counting on rather modest wage gains during the years ahead to boost their spending plans. Overall, the more optimistic data indicate that total real personal consumption expenditures will grow at 3.3 percent during 2015. The Consumer Sentiment Index was 98.1 in the January survey, up from 93.6 in December 2014 and 81.2 last January. This was the highest level of the Sentiment Index since 103.8 was recorded in January 2004. The Current Conditions Index rose to 109.3 from 104.8 one month ago and 96.8 one year ago. The Expectations Index rose to 91.0 in January 2015 from 86.4 in December and 71.2 in January 2014. The Current Conditions Index rose to 104.8 from 102.7 one month ago and 98.6 one year ago. The Expectations Index rose to 86.4 in December from 79.9 in November and 72.1 last December.  (MRN)