US household consumption likely to drive growth in 2016

University of Michigan index of consumer sentiment December final estimate was up to 92.6, slightly over expectations of 92.0.

Current conditions were up to 108.1, the highest since June. The consumer expectations were revised upwards a tick to 82.7, below November print but still over October.

Both were led by concerns related to personal finances, the current personal finances index climbed to 113 and expected personal finances went up to 124.

"Buying conditions for durables now stand at 167 (previous: 154), the highest since 2005 and consistent with continued strength in motor vehicle sales. Sentiment now stands in line with its average pace of improvement over the course of the recovery, and we expect household consumption will continue to drive growth in 2016", says Barclays in a research note.