The Nov-Dec confidence surge is showing up in hard data

Confidence is translating into spending and growth

Confidence is a fickle things. Sometimes it translates into economic growth, sometimes it doesn't.

The US dollar and stocks rallied in November-December on the jump in sentiment surveys. Here is the U Mich survey.

After year-end, the US dollar began to consolidate. Aside from the political ebb and flow, the market was waiting to see if the economic improvement showed up in hard data.

Now we're getting signs that it is. Today's retail sales report was strong across the board and the Empire factory survey was another sign of strong confidence.