CHICAGO, Feb. 2 (Xinhua) -- U.S. Consumer Sentiment Index was 95.7 in January 2018, down 0.2 points from December's 95.9 and 1.1 points from the 2017 average of 96.8, which was the highest yearly average since 2000, according to the Surveys of Consumers conducted by the University of Michigan (UM) Institute for Social Research.
Meanwhile, the Current Conditions Index was 110.5 in January, down from December's 113.8 and last year's 111.3; the Expectations Index was 86.3, between December's 84.3 and last year's 90.3.
All-time record numbers of consumers mentioned stock price increases and tax reforms as the reason behind the consumer sentiment remaining for more than a year at very favorable levels, said UM economist Richard Curtin, director of the surveys.
In January survey, 35 percent of the consumers surveyed spontaneously made favorable references to government economic policies, the highest level in more than a half century, and most of these references involved the recently passed tax reforms.
Moreover, the highest proportion of consumers ever recorded mentioned that the value of their household's asset holding had increased, as they anticipated an annual gain of 2.1 percent in income.
While consumers continued to expect growth in jobs and incomes, they also anticipated a slightly higher inflation rate during the year ahead. Data indicate that real personal consumption expenditures will expand by 2.8 percent in 2018.
"This basic sense of economic confidence only occurs after uncertainty is substantially reduced," said Curtin.
