by Calculated Risk on 12/11/2009 10:01:00 AM

From MarketWatch: Consumer sentiment soars in early Dec

Consumer sentiment improved markedly in early December, according to media reports on Friday of the Reuters/University of Michigan index. The consumer sentiment index rose to 73.4 in early December from 67.4 in November. ... This is the highest level of consumer sentiment since September.

Although this is being reported as "soars" and above expectations, sentiment is still low - at recesssion levels - and this is just a rebound to the September level.

Click on graph for larger image in new window.

Consumer sentiment is a coincident indicator - it tells you what you pretty much already know.

This graph shows consumer sentiment and the unemployment rate. There are other factors impacting sentiment too - like gasoline prices - but it is no surprise that consumer sentiment is still very low.