FXstreet.com (Barcelona) - Consumer's outlook in economy has brightened up unexpectedly in January, reaching its highest level since October, according to the latest report by the University of Michigan.
In January, the Consumer sentiment Index has reached a level of 80.5, from 75.5 from December, January's, well above the analysts expectations of a slight decline to 75.0. Current conditions index rose to 98.1 from 91.0 in December and the expectations index went up to 69.1 from 65.6 in December.
The one -year inflation expectation remained steady at 3.0% while the three-year inflation expectation index edged up to 3.1% from 3.0% in December.
Ian Shepherdson, Chief U.S. Economist at High Frequency Economics, Ltd, wonders how long this rebound might last, as these figures do not match with the recent economic data: This looks like noise to us. With the markets still in disarray consumers' confidence cannot stage a sustainable rebound. Indeed stock prices are a key leading indicator of sentiment, and the latest declines will hit the data next month.