Wealthy Boost Consumer Sentiment to 3-Year High

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The Thomson Reuters/University of Michigan consumer sentiment gauge rose to 77.5 in February, its highest level since January 2008.

That’s up from 74.2 in January and ahead of previous estimates of 75.1-75.4.

Wealthier consumers fueled the beat: Among households with incomes of $75,000 or more, sentiment rose 9.7%, bolstered by more favorable job and income prospects. By contrast, the index fell 1.4% among lower-income households.

Yet consumers across the board see unemployment falling in 2011, with the number who believe the job market is improving reaching the highest level since 2004.

The report comes after Tuesday’s Conference Board findings that consumer confidence had also hit a three-year high.

Still, the past week’s spike in oil prices has yet to be factored in, and may hurt sentiment going forward.



Original Article Source by Barrons.com