WASHINGTON (dpa-AFX) - Consumer sentiment in the U.S. has unexpectedly seen a significant increase in the month of October, according to a report released by the University of Michigan on Friday.
The report said the consumer sentiment index jumped to 101.1 in October after dipping to 95.1 in September. Economists had expected the index to edge down to 95.0.
With the unexpected increase, the consumer sentiment index surged up to its highest level reaching 103.8 in January of 2004.
'The October gain was broadly shared, occurring among all age and income subgroups and across all partisan viewpoints,' said Richard Curtin, the survey's chief economist.
He added, 'The data indicate a robust outlook for consumer spending that extends the current expansion to at least mid 2018, which would mark the 2nd longest expansion since the mid 1800's.'
The unexpected increase by the headline index reflected improvements in both the assessment of current conditions and the economic outlook.
The current economic conditions jumped to 116.4 in October from 111.7 in September, and the index of consumer expectations surged up to 91.3 from 84.4.
On the inflation front, one-year inflation expectations tumbled to 2.3 percent in October from 2.7 percent in September, while five-year inflation expectations dipped to 2.4 percent to 2.5 percent.
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