Bloomberg (12/24/14) Shobhana Chandra

The number of people applying for unemployment benefits in the week ended Dec. 20 dropped by 9,000 to 280,000, according to the U.S. Department of Labor. The 47 economists surveyed by Bloomberg had forecast claims of 290,000. The four-week moving average of new claims dropped by 8,500 to 290,250.

Reuters (12/23/14) Michael Connor

U.S. consumer sentiment rose in December to its highest point in almost eight years, according to the Thomson Reuters and University of Michigan consumer sentiment survey. The survey’s final reading was 93.6, up from November’s final reading of 88.8, but down from the preliminary December reading of 93.8. Economists surveyed by Reuters had forecast a reading of 93.5.

Federal Reserve Bank of Richmond (12/23/14)

Manufacturing activity grew modestly in the Mid-Atlantic states in December, according to the most recent survey by the Federal Reserve Bank of Richmond. Shipments and the volume of new orders edged up, and manufacturing employment grew at a faster pace. The December employment index rose from 10 in November to 13 in December. The future hiring expectations index rose from 22 to 23.

Bloomberg (12/23/14) Shobhana Chandra; Michelle Jamrisko

Consumer spending rose 0.6% in November, according to the U.S. Department of Commerce, while the economy grew at the fastest pace in 11 years. The 76 economists surveyed by Bloomberg had forecast a 0.5% increase in spending. Consumers are more confident due to the biggest employment gains since 1999 and the lowest gasoline prices in five years.

“We have very solid momentum entering 2015,” says Michael Gapen, chief U.S. economist for Barclays PLC. “Labor markets are doing better, the consumer has a more favorable outlook for the economy and their own incomes, and they’re acting on it.”

Bloomberg (12/23/14) Nina Glinski

Consumers expect their incomes to rise by 1.7% next year, up 1.1% from the last three months and the highest since 2008, according to the December Thomson Reuters and University of Michigan final consumer sentiment poll. The strongest expectations were among those under the age of 45 at 4.7%, up from 2.9% a year ago.

“As the unemployment rate continues to fall, we’re in the zone right now for wages to begin to pick up,” says Neil Dutta, head of U.S. economics at Renaissance Macro Research LLC. “I wouldn’t be surprised” to see wage growth of up to 3.5% this time next year, he says.