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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Dalin who wrote (45541)	12/21/2001 6:40:01 PM
From: stockman_scott	Respond to of 65232

Consumer sentiment rises again December 21, 2001 (Reuters)—U.S. consumer sentiment rose for the third straight month in December, a report said Friday, as an improved stock market and hopes for an economic recovery overshadowed concerns about job cuts, lifting hopes the worst of the recession has passed. ``The evidence continues mounting that the economy has already bottomed,'' said Ed Peters, chief investment officer at Panagora Asset Management in Boston. The University of Michigan's closely watched consumer sentiment index rose to 88.8 in December from 83.9 in November, market sources said. That beat forecasts of 85.7 and was well above the index's recent low of 81.8, struck in September. The preliminary reading, released mid-month, was 85.8. Economists closely watch the sentiment index for clues about consumer behavior. Consumer spending underpins about two-thirds of U.S. economic activity and is critical during the holiday shopping season. The index is down sharply from a peak of 112.0 in early 2000 but over the past three months has clawed most of its way back to where it was before the devastating Sept. 11 attacks. Sentiment read 91.5 in August. ``A lot of the economic numbers are getting back to pre-Sept. 11 levels,'' said Jim O'Sullivan, senior economist at UBS Warburg in Stamford, Connecticut. ``It is more evidence that the effects from September 11 have been brushed off.'' Stocks popped higher after the data were released, while U.S. Treasuries tumbled as hopes for a recovery dented market expectations of another Federal Reserve interest rate cut. The dollar, strong on the session, did not react to the data. The University of Michigan's current conditions index, which gauges consumers' attitudes about their present financial situation, edged up to 99.0 in December from 95.3 in November. The preliminary reading for December was 95.9. The expectations index, which tracks consumer attitudes about the next 12 months, spiked up to 82.3 in December from 76.6 in November. The preliminary December reading was 79.3. The consumer sentiment survey is based on telephone interviews with roughly 500 Americans across the country on personal finances, business conditions and buying conditions. The index was up sharply from a mid-month reading, based on roughly 250 interviews.