by Bill McBride on 12/21/2012 09:55:00 AM
Friday, December 21, 2012
Click on graph for larger image.
The final Reuters / University of Michigan consumer sentiment index for December declined to 72.9, down from the preliminary reading of 74.5, and was down from the November reading of 82.7.
This was below the consensus forecast of 75.0. The recent decline in sentiment is probably related to Congress and the so-called "fiscal cliff". This is similar to the sharp decline in 2011 when Congress threatened to force the US to default (not pay the bills).
I still think an agreement will be reached in early January - there is no drop dead date - but you never know.