Consumer confidence up/trade deficit down

Two pieces of good economic news were released today.  The Thomson Reuters/University of Michigan preliminary index of consumer sentiment rose to 67.7 this month up from 64.1 last month. That’s much better than most economists expected and the highest level since June.  It could be a signal that consumers are ready to spend again.

In another good sign for the future of the economy, the trade deficit dropped to its lowest level since April according to the Commerce Department.  The drop was driven by a sharp decline in the demand for petroleum.

Any improvement in the economy is good news for Obama and the Democrats and bad news for Republicans who were hoping to ride to success in the 2012 election based upon high unemployment and a sluggish economy. 

Read about the Consumer Confidence report here:

http://www.reuters.com/article/2011/12/09/us-usa-economy-idUSTRE7AL14I20111209

http://www.businessweek.com/news/2011-12-09/consumer-sentiment-in-u-s-increases-more-than-forecast.html

Read about the trade deficit here:

http://www.businessweek.com/news/2011-12-09/trade-gap-in-u-s-shrank-in-october-to-lowest-this-year.html

http://www.bea.gov/newsreleases/international/trade/tradnewsrelease.htm