Preliminary December Consumer Sentiment declines sharply to 74.5

Note: I'll have more on the employment report soon.


Click on graph for larger image.

The preliminary Reuters / University of Michigan consumer sentiment index for December declined to 74.5 from the November reading of 82.7.

This was way below the consensus forecast of 83.0. There are a number of factors that can impact sentiment including unemployment, gasoline prices and other concerns.

Back in August 2011, sentiment declined sharply due to the threat of default and the debt ceiling debate. Unfortunately we might be seeing a repeat of that debacle.