Bloomberg (01/16/15) Victoria Stilwell

The University of Michigan preliminary consumer sentiment index increased in January to an 11-year high of 98.2, up from 93.6 the month before. The 70 economists surveyed by Bloomberg had forecast a reading of 94.1.

“The economy is on a very solid footing beginning the new year,” says Brian Jones, a senior U.S. economist at Societe Generale in New York. “We continue to generate jobs at a fairly rapid clip, and what you’re also seeing is consumers’ response to what I call a tax cut from lower gasoline prices. That frees up a lot of spending and that means they can purchase other goods and services.”