Investing.com – U.S. consumer sentiment unexpectedly increased in February, according to a report published on Friday.
The preliminary publication of the data for February from the University of Michigan's Consumer Survey Center showed that consumer sentiment rose to 99.9 last month. That was its second highest reading since 2004.
That was compared to January’s reading of 95.7.
Analysts had forecast the reading to slip to 95.4.
The current conditions indicator advanced to 115.1 in February, from the previous 110.5.
Economists had projected that the index would rise to only 112.0.
Meanwhile, inflation expectations for the next 12 months held steady at 2.7%, while the five-year gauge was unchanged at 2.5%.
Chief economist Richard Curtin noted that stock market gyrations were dominated by rising incomes, employment growth, and by net favorable perceptions of the tax reforms.
“Indeed, when asked to identify any recent economic news they had heard, negative references to stock prices were spontaneously cited by just 6% of all consumers,” he said in the report.
“In contrast, favorable references to government policies were cited by 35% in February, unchanged from January, and the highest level recorded in more than a half century,” he added.
Curtin further commented that the survey showed the largest proportion of households that reported an improved financial situation since the year 2000 and that they largely expected higher income gains over the next year.
"Overall, the data signal an expected gain of 2.9% in real personal consumption expenditures during 2018," Curtin concluded.