Improving economy lifts consumer sentiment

Preliminary data from the University of Michigan’s survey of consumer sentiment showed that consumers are moving past the summer lull in economic activity and growing a bit more optimistic about the future, despite November's rise in the unemployment rate.

The Consumer Sentiment Index increased from 71.6 in November to a mid-December reading of 74.2, the second-monthly increase and the highest reading since June.



The improvement in sentiment comes just in time for the Christmas shopping season.

Many analysts, including myself, are cautiously optimistic that the improving economy and increasing level of consumer confidence may bring some much-needed holiday cheer to recession-weary retailers.