The outlook of Americans is improving. University of Michigan Surveys of Consumers chief economist_ Richard Curtin Consumer sentiment rose to the upper end of the favorable range it has traveled since the start of 2017. The Sentiment Index has averaged 97.0 in the past three years_ the highest sustained level since the all-time record in the Clinton administration. Nearly all of the early December gain was among upper income households_ who also reported near record gains in household wealth_ largely due to increased stock prices. Indeed_ among households with incomes in the top third of the distribution_ their overall assessment of their current finances was the third highest in the past twenty years. These gains were aided by declining inflation expectations_ with long term inflation expectations returning to an all-time low.
