Consumer Confidence Hits Another Post-Recession High As Gas Prices Continue Falling

Consumer sentiment reached 88.8, its highest mark since July 2007, in the final November reading by Thomson Reuters/University of Michigan Surveys of Consumers. The group said the November gain was “due to improved personal finances as well as a more favorable outlook for employment.” Those surveyed believe employment gains will continue and expect the largest income gains of the past six years. Even households in the bottom third of income distribution anticipate gains. The group’s Expectations and Current Situation Indexes also rose. The Expectations Index is running nearly 20% higher than this time last year.

Meanwhile, gasoline prices in the U.S. continued to plummet. Prices fell more than 10 cents in the week ended Monday, Dec. 8, according to data from AAA’s Daily Fuel Gauge Report. The average national price for a gallon of regular has fallen to $2.668. This compares with $3.264 a year ago or almost 60 cents less. Prices have dropped 95 cents since late April. AAA estimates that Americans are saving more than $200 million a day on gasoline compared with a year ago. And the group also expects prices to drop another 15-20 cents in the near term given declines in crude oil prices.