Consumer sentiment in the U.S. has seen a significant improvement in the month of January, according to a report released by Reuters and the University of Michigan on Friday, with the consumer sentiment index rising by much more than anticipated.
The report showed that the consumer sentiment index jumped to 74.0 in January from the final December reading of 69.9. Economists had been expecting the index to edge up to a reading of 71.5.
With the much bigger than expected increase, the consumer sentiment index reached its highest level since coming in at 74.3 last May.
Jennifer Lee, senior economist with BMO Capital Markets, said, "The University of Michigan's consumer sentiment index showed that American consumers walked with their heads held up a little higher at the start of 2012."
"It certainly helps that U.S. equity markets are (were) at 5-month highs, buoyed by better news on the U.S. economic front (that is, until yesterday)," she added. "But uncertainty and volatility do not help and there is still lots of that going around."
The notable increase by the headline index reflected solid gains by both the current economic conditions index and the consumer expectations index.
The current conditions index rose to 82.6 in January from 79.6 in December, while the expectations index climbed to 68.4 from 63.6.
The current conditions index advanced to its highest level since last February and the expectations index reached its best level since last May
The report also showed that one-year inflation expectations edged up to 3.2 percent from 3.1 percent, while the five-year inflation outlook inched up to 2.8 percent from 2.7 percent.
Consumer sentiment in the U.S. has seen a significant improvement in the month of January, according to a report released by Reuters and the University of Michigan on Friday, with the consumer sentiment index rising by much more than anticipated.The report showed that the consumer sentiment index jumped to 74.0 in January from the final December reading of 69.9. Economists had been expecting the index to edge up to a reading of 71.5.
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