by Calculated Risk on 12/22/2011 09:55:00 AM

The final December Reuters / University of Michigan consumer sentiment index increased to 69.9, up from the preliminary reading of 67.7, and up from the November reading of 64.1.


Click on graph for larger image.

Consumer sentiment is usually impacted by employment (and the unemployment rate) and gasoline prices. Gasoline prices are falling, but still high, and the unemployment rate is also falling - but still very high.

Most of the recent sharp decline was event driven due to the debt ceiling debate, and sentiment has rebounded as expected. Now it is all about jobs - and gasoline prices.

Sentiment is still very weak, although above the consensus forecast of 68.0.