MONEY
11/09/2012 09:59 am ET Updated Jan 09, 2013

Consumer Sentiment Hits Five-Year High In November

SANTA MONICA, CA - AUGUST 17:  Shoppers are reflected in the window of a clothing store at the Third Street Promenade's outdo
SANTA MONICA, CA - AUGUST 17: Shoppers are reflected in the window of a clothing store at the Third Street Promenade's outdoor shopping mall on August 17, 2012 in Santa Monica, California. According to reports, consumer spending has increased and consumer confidence has risen to the highest level in three months. (Photo by Kevork Djansezian/Getty Images)

NEW YORK, Nov 9 (Reuters) - U.S. consumer sentiment rose to its highest level in more than five years in November as consumers felt more optimistic about employment prospects and the outlook for the overall economy, a survey released on Friday showed.

The Thomson Reuters/University of Michigan preliminary reading on the overall index on consumer sentiment came in at 84.9, up from 82.6 the month before.

It was above the median forecast of 83 among economists polled by Reuters.

"More consumers expected good rather than bad times financially in the economy in early November, not only for the year ahead but over the next five years as well," survey director Richard Curtin said in a statement.

"This was the most positive outlook for the overall economy in more than five years," he said.

The survey's barometer of current economic conditions rose to 91.3 from 88.1 and above a forecast of 88.8.

The survey's gauge of consumer expectations rose to 80.8 from 79.0 and above an expected 79.6.

The survey's one-year inflation expectation fell to 3.0 percent from 3.1 percent, while the survey's five-to-10-year inflation outlook was at 2.8 percent from 2.7 percent. (Reporting by Edward Krudy; Editing by Dale Hudson)

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