With the economy growing at its fastest pace in two years, consumer sentiment is finishing 2013 on a high note. According to Thomson Reuters-University of Michigan’s final reading, consumer sentiment reached 82.5 in December compared to a reading of 75.1 in November.
It was the highest reading in consumer sentiment since July. However, the results were slightly weaker than estimated. On average, economists expected the index to reach 83 this month. In 2013, consumer sentiment has ranged from a low of 73.2 in October to a high of 85.1 in July. The report comes shortly after the Department of Commerce said the U.S. economy grew at a 4.1 percent annual pace in the third quarter.
“Most of the gain was due to more favorable buying plans due to renewed discounting as well as more favorable short-term prospects for the economy,” survey director Richard Curtin said in a statement. “Personal finances, the most critical factor that shapes consumer spending, did improve in late December, although largely due to rising incomes and wealth among those in the top third.”