The University of Michigan says its index of consumer sentiment has jumped to 93.6 from 88.8 in November. That's the highest level since January 2007, nearly a year before the Great Recession officially began.
Americans may finally be shedding some of their anxiety about the economy. Half the respondents expect the U.S. to avoid a recession in the next five years, the most in a decade.
Americans are also more optimistic about pay: They expect a wage gain of 1.7 per cent in 2015, the highest since 2008. Higher expectations about pay typically suggest that Americans are more likely to demand raises.