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U.S. consumer sentiment jumps to five-month high in December
Last Updated: 2013-12-07 05:15 | Xinhua
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U.S. consumer sentiment jumped to a five-month high in December as the outlook of job market improved, a survey showed Friday.

The preliminary reading of the consumer sentiment index in December rose to 82.5, the highest level since July, from 75.1 in November, the monthly Thomson Reuters/ University of Michigan survey of consumers showed. That was also higher than economists' expectations for a reading of 76 this month.

The sub-index of current economic conditions, which reflects Americans' perceptions of their financial situation and whether they consider it a good time to buy big-ticket items like houses or cars, surged to a five-month high of 97.9 in December from 88.0 in November.

The sub-index gauging consumer expectations for six months from now, which more closely projects the direction of consumer spending, climbed to 72.7 in December from 66.8 the prior month.

Economists said the rising consumer confidence was mainly boosted by an improving job market. The weekly applications for unemployment aid had been trending lower for the past two months and the job growth also appeared to pick up.

The economy added stronger-than-expected 203,000 jobs in November while the unemployment rate edged down to 7 percent, the lowest level in five years, the Labor Department reported Friday.

American households may also feel wealthier and more optimistic about job prospects as house prices continued to rise and the stock market fluctuated near record highs.

The consumer sentiment index, released twice each month, one preliminary and the other final, averaged 64.2 during the past recession from December 2007 to June 2009, and was at 89 in the five years leading up to the recession.

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