Reflecting a boost in optimism following President-elect Donald Trump's surprise victory, the University of Michigan released a report on Wednesday showing an unexpected upward revision to its reading on consumer sentiment in the month of November.
The University of Michigan said the final reading on its consumer sentiment index for November came in at 93.8 compared to the preliminary reading of 91.6.
The consumer sentiment index is well above the final October reading of 87.2 and at its highest level since reaching 94.7 in May.
The upward revision came as a surprise to economists, who had expected the index to come in unrevised from the preliminary reading.
"The post-election boost in optimism was widespread, with gains recorded among all income and age subgroups and across all regions of the country," said Richard Curtin, the survey's chief economist.
He added, "The upsurge in favorable economic prospects is not surprising given Trump's populist policy views, and it was perhaps exaggerated by what most considered a surprising victory as well as by a widespread sense of relief that the election had finally ended."
The report said the current economic conditions index surged up 107.3 in November from 103.2 in October, while the index of consumer expectations jumped to 85.2 from 76.8.
Revised data showed that one-year inflation expectations held at 2.4 percent, while five-year inflation expectations climbed to 2.6 percent from 2.4 percent.
by RTT Staff Writer
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