Investing.com - A key gauge of U.S. consumer confidence was revised higher in January, but still remained near its lowest level in two years as worry over the government shutdown weighed on consumers, according to a survey released on Friday.
A slight boost in sentiment after the shutdown ended is unlikely to last, as the resolution is only until mid-February.
The University of Michigan's consumer confidence index was revised up to 91.2 from a preliminary reading of 90.7. Economists had forecast a reading of 90.8.
"Consumer sentiment remained at month-end at its lowest level since (U.S. President Donald) Trump was elected. The end of the shutdown caused only a modest boost in the Sentiment Index. The typical impact of such "crisis" events is short lived, with consumers quickly regaining lost confidence," Surveys of Consumers Chief Economist Richard Curtin said.
A sub-index tracking consumer expectations rose to 79.9 from 78.3, while a separate gauge tracking current conditions fell to 108.8 from 110.0.
Consumers are not as optimistic about future job gains due to the shutdown, the survey found.
"There is still time to avoid a sustained decline in confidence, but it would require an end to the standoff. Indeed, if the current level of confidence is maintained, it would be consistent with a 2.6% growth in consumer spending in 2019," Curtin said.