Consumer confidence rose in January to a 13-year high, reflecting ongoing optimism about post-election fiscal policies and their impact on economic growth.
Bloomberg reported that the University of Michigan said that its final index of sentiment increased to 98.5 from 98.2 in December. The median projection in a Bloomberg survey called for the measure to hold at its preliminary reading of 98.1.
While President Donald Trump’s promises to grow the economy, cut taxes and create more job opportunities have propelled sentiment, attitudes will be ultimately defined by proof of economic improvement. The report showed 44% of respondents, the most since 2004, said they anticipate the economy improving this year, while 33% expected the unemployment rate to keep falling.
“Importantly, consumers reported much more positive assessments of their current financial situation due to gains in both incomes and household wealth, and anticipated the most positive outlook for their personal finances in more than a decade,” Richard Curtin, director of the consumer survey, said in a statement.
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