Michigan consumer confidence index misses initial estimate

Consumer sentiment in the US improved less than initially estimated in February, according to a final reading from the University of Michigan.

The consumer sentiment index rose to 93.8 from 91.2 in January, but came in below the initial estimate of 95.5.

Meanwhile, the current economic conditions index declined to 108.5 from 108.8 in January and 114.9 in February 2018.

The index of consumer expectations rose to 84.4 in February from 79.9 the month before, but was down from February 2018's reading of 90.0.

Survey of Consumers chief economist Richard Curtin said that although sentiment was still above last month's low, the bounce-back from the end of the Federal shutdown faded late last month.

"While the overall level of confidence remains diminished, it is still quite positive. Nonetheless, aside from last month, it was only lower in one month since Trump's election, but barely, at 93.4 in July 2017. Consumers continued to react to the Fed's pause in raising interest rates, balancing the favourable impact on borrowing costs against the negative message that the economy at present could not withstand another rate hike.

"The data indicate that personal consumption expenditures will grow by 2.6% in 2019 and the strength in consumer spending will mean that the expansion is expected to set a new record length by mid-year."