Consumers Upbeat on Hopes of Swift Recovery

Consumer optimism was the highest in a year in January as growing hopes for a swift recovery from recession overshadowed worries about joblessness.

The University of Michigan’s closely watched index surged for a fourth straight month to 94.2 in early January from 88.8 in December, beating forecasts. The index hit its highest level since January 2001 and is up more than 12 points from a post-Sept. 11 low.

Analysts said the report was the latest confirmation that consumers have withstood the worst of the downturn and are feeling better about the future. But they cautioned that the unexpectedly strong lift in consumer sentiment did not necessarily foretell a similar rise in spending.