US: Despite December slip, consumer sentiment was the strongest since 2000 - Wells Fargo

Despite ending the year modestly downward, full year 2017 consumer sentiment was the strongest since 2000, noted analysts from Wells Fargo. 

Key Quotes: 

“Led by a decline amongst lower income households, the University of Michigan consumer sentiment index slipped in December. That being said, the full year average of consumer sentiment for 2017 was the highest since 2000 and is consistent with other buoyant sentiment measures.”

“A modest rise in the assessment of current conditions was offset by a 4.6 point decline in the assessment of expectations.”

“Coloring the backdrop, tax reform was spontaneously mentioned by nearly a third of all survey participants, with views equally split amongst party lines. The net assessment of current household finances also stands at a 17-year high–a supportive environment for solid consumer spending growth. Indeed, the report suggests sentiment data are consistent with 2.6 percent real consumer spending growth in 2018–matching our own forecast.”