Investing.com - A key gauge of U.S. consumer confidence was revised higher in February, according to a survey released on Friday.
The University of Michigan's consumer sentiment index was revised up from a preliminary reading of 95.7 to 99.7. That was its second highest level since 2004.
Economists had forecast a reading of 99.5.
A sub index tracking consumer expectations rose from 86.3 to 90.0, while a separate gauge tracking current conditions rose from 110.5 to 114.9.
Those readings compared to a consensus forecast of 90.2 and 115.1, respectively.
Meanwhile, inflation expectations for the next 12 months held steady at 2.7%, while the five-year gauge was unchanged at 2.5%.
"Consumers based their optimism on favorable assessments of jobs, wages, and higher after-tax pay," the surveyor's chief economist Richard Curtin said.
Curtin indicated that the highest proportion of households since 1998 reported that their finances had improved compared with a year ago and anticipated continued gains during the year ahead.
“Economic news heard by consumers continued to be dominated by the tax reform legislation and net job gains, which was untarnished by the consensus view that interest rates would increase and stock prices would remain volatile,” he added.
“Although rising interest rates was seen as a reason to temper their longer term outlook for the overall economy, only a modest moderation in the pace of economic growth was anticipated,” Curtin explained.
According to Curtin’s calculations, the data signaled an expected gain of 2.9% in real personal consumption expenditures during 2018.