Consumer sentiment in the U.S. improved by slightly less than initially estimated in the month of February, according to a report released by the University of Michigan on Friday, although the consumer sentiment index was still up sharply from January.
The report said the final reading on the consumer sentiment index for February came in at 99.7 compared to the initial estimate of 99.9. Economists had expected the index to be downwardly revised to 99.5.
Despite the downward revision, the consumer sentiment index for February is still well above the final January reading of 95.7.
“Consumer sentiment remained quite favorable in February, at its second highest level since 2004,” said Richard Curtin, the survey’s chief economist. “Consumers based their optimism on favorable assessments of jobs, wages, and higher after-tax pay.”
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.”
The current economic conditions index climbed to 114.9 in February from 110.5 in January, while the index of consumer expectations rose to 90.0 from 86.3 percent.
On the inflation front, one-year inflation expectations remained at 2.7 percent for the third straight month, while five-year inflation expectations held at 2.5 percent.