Four-Month High in U.S. Consumer Sentiment to Sustain Spending

A four-month high in consumer confidence indicates Americans remain optimistic about their incomes, helping to support steady growth in spending this year, University of Michigan survey data showed Friday.

Americans are increasingly confident in their financial prospects, with 44 percent expecting an improved situation in the year ahead, the highest share since 2004. While the partisan divide remains wide, it’s narrowing somewhat, as 34 percent of Democrats had a favorable economic outlook for the year ahead, up from 21 percent three months ago, against 83 percent of Republicans. Recent job growth is supporting Americans’ optimism about the labor market, though consumers may need to see more significant wage gains to sustain confidence levels.