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"Overall, it is still likely that real consumer expenditures will not be strong enough during the year ahead"
- Richard Curtin, Director of the Reuters/University of Michigan Surveys
U.S. consumer confidence advanced to highest level in five months as consumers became more optimistic on the outlook of the coun-try's economy, said the Thomson Reuters/University of Michigan on Friday. An index of sentiment rose to 64.2 points in November from 60.9 points in October.
"Overall, it is still likely that real consumer expenditures will not be strong enough during the year ahead to enable the higher rates of economic growth needed to offset the negative grip of income and job stagnation on consumer spending," survey director Richard Curtin said in a statement. "Although improved, a renewed downturn in the economy still has an uncomfortably high probability of occurring."
"At some point consumers have to step back and see that the labor market is holding up, the unemployment rate is coming down, home prices are maybe starting to stabilize, and they're going to have to reassess why they're so depressed," said Carl Riccadonna, senior U.S. economist at Deutsche Bank Securities Inc., before the report.