US consumer confidence in January rises to highest level since 2004

US consumer confidence in January rose to its highest level since 2004, driven by a more optimistic outlook for the economy and for job growth, according to a widely-followed survey on Friday.

The University of Michigan’s consumer sentiment index increased to 98.5 in January from 98.2 the previous month, beating analysts’ estimates for a reading of 98.1.

Consumers were more positive about their current financial situation and on economic prospects for the next five years.

The survey revealed one in five consumers borrowed in advance of anticipated increases in mortgage rates as they expected the Federal Reserve would raise interest rates due to a stronger economy.

“Overall, the post-election surge in consumer confidence was based on political promises, and not, as yet, on economic outcomes,” said Richard Curtin, Surveys of Consumers chief economist.