Consumer Sentiment Advances to Highest Level in Nearly 7 Years

Consumer sentiment in the U.S. advanced last week to the highest level since January 2008 as Americans grew more optimistic about their financial well-being and the buying climate.

The Bloomberg Consumer Comfort Index climbed to 38.5 in the period ended November 16 from 38.2 the week before. While a monthly measure tracking the economic outlook fell to 47 in November from a two-year high of 51, the share of respondents saying the economy is improving matched the second-highest since June 2013.

The measure of confidence "reached its best in nearly seven years this week," Gary Langer, president of Langer Research Associates LLC in New York, which produces the data for Bloomberg, said in a statement. Nonetheless, monthly economic expectations point to "potential difficulties ahead."

Today's report on sentiment showed the weekly gauge of personal finances increased to 54.4, the highest since April 2008, from 53.9. The buying-climate measure, which asks whether this is a good time to purchase goods and services, rose to 32.8 from 31.9 the prior period.

Bloomberg's weekly measure about the state of the economy eased to 28.2 from an almost seven-year high of 28.9 the prior week.

Americans are finding relief at the gas pump. The nationwide average for a gallon of fuel at the pump was $2.86 on Nov. 18, the lowest in four years, according to AAA, the largest U.S. auto group.

Sentiment among households earning more than $50,000 reached its highest level since July 2013, while that among households earning less than $50,000 declined to a five-week low.