US DEBT HITS ALL TIME HIGH; HOUSING BUBBLE BURSTING AND YET THIS:-
Consumer sentiment hits a two-year high Index in January rises to 96.9 from 91.7 on positive outlook on economy and wage gains; consumers worried about inflation, a survey shows. February 2 2007: 10:18 AM EST
NEW YORK (Reuters) -- U.S. consumer sentiment rose in January to its highest in two years on favorable expectations for the U.S. economy and for higher wage gains, a survey showed Friday.
The Reuters/University of Michigan Surveys of Consumers said the final January reading on the consumer sentiment index rose to 96.9 from 91.7 at the end of December. The final January reading was the highest since December 2004.
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The median forecast on the overall sentiment reading among analysts polled by Reuters was 98.0, which was on target with a preliminary January estimate from Reuters/University of Michigan made last month.
Income, spending up The survey's gauge of current consumer conditions was 111.3 in January against a December reading of 108.1, while its final measure on consumer expectations was 87.6 versus 81.2.
Consumers, while generally upbeat, remained worried about inflation despite a decline in gasoline prices.
The survey's one-year inflation index edged up to 3.0 percent in January from 2.9 in late December, and its five-year inflation index stood at 3.0 percent for a third straight month.
The Reuters/University of Michigan Surveys of Consumers, a monthly series of data on U.S. consumer sentiment, are produced by the University of Michigan in Ann Arbor, Michigan. From January 2007, Reuters has exclusive rights to distribute the data.
