The University of Michigan index of consumer sentiment rose unexpectedly to 98 in the preliminary April estimate and reached its highest levels since January 2015. Consumer optimism on current economic conditions climbed to its strongest level since November 2000, the survey released on Thursday showed.
The April reading beat forecasts at 96.5 and compared to a reading of 96.9 in the previous month. The current conditions index improved the most, to 115.2 from 113.2 in the previous month, and the expectations index edged higher, to 86.9 from prior 86.5.
Both long-term and 12-month inflation expectations were unchanged at 2.4 percent and 2.5 percent, respectively. Consumers have hoped for more jobs and higher income due to tax cuts, infrastructure spending and looser regulations following Republican Donald Trump's presidential win in November.
"The continued improvement in the headline index since November remains consistent with strong consumer sentiment, although this confidence has yet to translate into stronger activity for the household sector, with retail sales and personal consumption data for January and February coming in on the soft side," said Barclays in a report.
