The numbers: The University of Michigan’s gauge of consumer sentiment rose slightly to a final December reading of 70.6 from the initial reading of 70.4, staying above November’s final level of 67.4.
Economists surveyed by The Wall Street Journal had forecast an unchanged reading of 70.4.
What they’re saying: “The uptick was primarily due to significant gains among households with incomes in the bottom third of the distribution. Indeed, the bottom third expected their incomes to rise during the year ahead by 2.8%, up from 1.8% last December, and the highest level since 2.9% was recorded in 1999,” said Richard Curtin, the UMich survey’s chief economist.
“The announced increase in Social Security payments of 5.9% in 2022 was partly responsible for the gain, and 5.0% increases in expected wage among the youngest workers. Importantly, too few interviews were conducted to capture the impact of the rapid spread of the Omicron variant in the U.S.”
Related: South Africa offers grounds for cautious optimism on omicron variant
Big picture: Sentiment has been pressured lately by high U.S. inflation, with a sharp drop in November for the UMich gauge’s initial reading that month to the lowest level in a decade — 66.8.
Market reaction: Stocks
DJIA,
SPX,
traded higher on Thursday.
