Consumer Comfort Highest Since October 2007

According to Bloomberg, consumer confidence climbed last week to a seven-year high as cheaper gasoline and traction in the labor market boosted Americans' views of the buying climate and economy.

The Bloomberg Consumer Comfort Index increased to 43.1 in the week ended December 21, its highest level since October 2007, from 41.7 in the prior period. All three components of the index advanced.

The cheapest gasoline in five years and the strongest employment gains since 1999 are keeping households upbeat about prospects for the expansion. Such optimism will probably provide more fuel for consumer spending, which helped the economy expand in the third quarter at the fastest rate in 11 years.

The Bloomberg measure of whether it's a good time to make purchases rose to 39.8 last week, the best reading since April 2007, from 38.4. The gauge of personal finances increased to 54.7 last week from 54.1 in the previous survey.

Sentiment on the state of the national economy climbed to 34.7, also the strongest since October 2007, two months before the last recession began, from 32.5 in the prior period.