U.S. consumer sentiment continues rising in January from a 12-year high

U.S. consumer sentiment continued rising in January after reaching a twelve-year high in December, as consumers felt more confident about future economic outlook and their current financial situation.

The final reading of the consumer sentiment for January increased to 98.5 from 98.2 in December, said the Thomson Reuters/University of Michigan index of consumer sentiment on Friday.

"The post-election surge in confidence was driven by a more optimistic outlook for the economy and job growth during the year ahead as well as more favorable economic prospects over the next five years," said survey director Richard Curtin in a statement.

"Consumers also reported much more positive assessments of their current financial situation due to gains in both incomes and household wealth, and anticipated the most positive outlook for their personal finances in more than a decade," Curtin said.

The sub-index of current conditions, reflecting Americans' perceptions of their financial situation and whether they consider it a good time to buy big-ticket items like cars, slid to 111.3 from 111.9 last month.

The sub-index gauging consumer expectations for six months from now, which more closely projects the direction of consumer spending, increased to 90.3 from 89.5 in December.

"Overall, the post-election surge in consumer confidence was based on political promises, and not, as yet, on economic outcomes," added Curtin. Enditem