Consumers, fueled by confidence that their incomes will improve in the months ahead and that inflation rates on items will stay suppressed, appear to be ready to rock the holidays.
CNBC correspondent Reem Nasr reported Friday that the Thomson Reuters/University of Michigan's preliminary November reading on the index was 93.1. That was higher than the previous month's reading of 90 and also higher than expectations of 91.5 by Thomson Reuters. Nasr quotes Surveys of Consumers Chief Economist Richard Curtin:
"Two trends dominated the early November data: consumers anticipated somewhat larger income increases during the year ahead as well as expected a somewhat lower inflation rate. This meant that consumers held the most favorable inflation-adjusted income expectations since 2007."