US consumer sentiment edges up more than expected in January

Consumer sentiment in the US rose a little more than expected this month, according to preliminary figures released by the University of Michigan.

The index of consumer sentiment rose to 93.3 in January from 92.6 in December and compared with economists’ expectations for a reading of 93.

This marked the fourth consecutive month the index inched higher and was attributed to more positive expectations for future economic growth.

The index of economic conditions, meanwhile, slipped to 105.1 from 108.1 last month, while the index of consumer expectations edged up on the month to 85.7 from 82.7.

Surveys of Consumers chief economist, Richard Curtin, said: “Personal financial prospects have remained largely unchanged during the past year at the most favourable levels since 2007 largely due to trends in inflation rather than wages.

“Indeed, expected wage gains fell to their lowest level in a year in early January, but were more than offset by declines in the expected inflation rate.”

The result was that inflation-adjusted income expectations rose to their highest level in nine years.