In continuing the pre-election twilight zone data series, respondents to the UMichigan consumer confidence poll apparently have not a care in the world about the upcoming fiscal cliff, or record high gas prices in California for that matter, and are more confident than they have ever been in the past 5 years. With the final number printing at 83.1, well above the highest Wall Street forecast of 81.0 from DB's Joe LaVorgna of course, and 5 std deviations above the consensus forecast (a 7 year beat of expectations) of a decline to 78.0 from last month's 78.3, all one can do at this point is pull a Biden and just keep on laughing. The internal, while completely irrelevant as we have uncovered merely the latest doctored economic data set, joining the unemployment rate and the initial claims number, current conditions rose to 88.6 from 85.7, while it was expectations that set the mood, rising to the highest since July 2007 or 79.5, up from 73.5. And while last month it was the inflation expectations, both 1 and 5 year, that soared because apparently UMich was unaware these have to decline for "inflation expectations to be anchored" this time around respondents saw 5 year inflation decline from 2.8% to 2.6%, apparently confused that the only reason why expectations are soaring is because the Chairman promised to send future inflation soaring. But who cares about logic when massaging data.
Highest since Sept 2007, Biggest beat since Dec 2005
A 5-Sigma beat of economist expectations...