US consumer sentiment rises to new 7-year high on greater optimism about income, spending

WASHINGTON – Greater optimism about income growth and future spending pushed U.S. consumer sentiment to a fresh 7-year high in November.

The University of Michigan says its index of consumer sentiment rose to 88.8 in November from 86.9 in October. That’s the highest since July 2007, five months before the Great Recession began.

The report adds to a mixed picture of U.S. consumers heading into the holiday shopping season. A separate measure of consumer confidence, released Tuesday, fell sharply after reaching its own 7-year high last month. And Americans are spending at a sluggish pace despite a pickup in job creation this year.

Still, the Michigan survey found consumers said they were more likely to spend on big-ticket items such as appliances and autos than at any time since the recession began.