Consumer confidence in the U.S. grew to the highest level in more than half a year in the second month of the year, suggesting that recent positive economic data is translating to relief for Americans, according to Bloomberg. On Friday, the preliminary Thomson Reuters/University of Michigan index of consumer sentiment was reported at 75.1 in February from 74.2 the previous month, marking the highest level for the gauge in eight months and just slightly exceeded economists’ forecast. However, the index is still well below the pre-recession average level of 89 recorded in the five years to December 2007.
The increase in consumer confidence comes after Federal Reserve Chairman Ben Bernanke forecast, “The growth rate of economic activity appears likely to pick up this year.” Tom Porcelli of RBC Capital Markets pointed to signs that “confidence is starting to come back” as a key metric supporting Bernanke’s expectation. Also within the report, the index for big purchases jumped five points to 86.7, which is the highest in over two years. However, the sub-index for economic expectations dropped more than two points to 67.6, which reflects uncertainty over the trajectory of the recovery in the first half of the year.