Consumer sentiment in the U.S. improved by even more than initially estimated in the month of December, according to a report released by the University of Michigan on Friday.
The University of Michigan said its consumer sentiment index for December was upwardly revised to 98.2 from the preliminary reading of 98.0.
Economists had expected the index to remain at 98.0, which was still well above the final November reading of 93.8.
With the unexpected upward revision, the consumer sentiment index reached its highest levels since January of 2004.
The monthly increase by the index reflected optimism following Donald Trump's surprise victory, with a record number of consumers spontaneously mentioning the expected favorable impact of the president-elect's economic policies.
"Needless to say, the overall gain in confidence was based on anticipated policy changes, with specific details as yet unknown," said Richard Curtin, the survey's chief economist.
He added, "Such favorable expectations could help jump-start growth before the actual enactment of policy changes, and form higher performance standards that will be used to judge the Trump presidency."
The report said the current economic conditions index surged up 111.9 in December from 107.3 in November, while the index of consumer expectations jumped to 89.5 from 85.2.
On the inflation front, one-year inflation expectations dipped to 2.2 percent in December from 2.4 percent in November and five-year inflation expectations fell to 2.3 percent from 2.6 percent.
by RTT Staff Writer
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