by Calculated Risk on 12/10/2010 09:55:00 AM

The preliminary Reuters / University of Michigan consumer sentiment index increased to 74.2 in December from 71.6 in November.

Click on graph for larger image in graphics gallery.

This was above the consensus forecast of 72.5.

This is the highest level since June 2010, but sentiment is still at levels usually associated with a recession - and sentiment is well below the pre-recession levels.

In general consumer sentiment is a coincident indicator.