US consumer sentiment rises, trade gap narrows

NEW YORK, Dec 10 (Reuters): An index of consumer sentiment rose to its highest in six months in early December and the trade deficit narrowed in October in the latest signs that the US economy's health is slowly improving. The Thomson ReutersUniversity of Michigan preliminary December reading on consumer confidence Friday climbed for a fourth straight month to 67.7 from 64.1 in November. "US consumers appear to be ending the year in a better mood," said Paul Dales, an economist at Capital Economics in London. Improved confidence could lead Americans to spend more readily, which would add to the recent momentum gained from strong retail sales and factory output. Also supporting growth, the narrowing in the trade deficit showed that more goods and services bought by US businesses and consumers were produced within the country. Employment has also made gains in recent months, although some economists expect the pace of improvement will be too slow for consumers to ramp up spending for long. "Although the recent increase may provide that little bit of support to spending in the malls in the coming weeks, it won't lead to a long and lasting acceleration in consumption growth," said Dales.