U.S. consumer sentiment rises to second highest level since 2004

WASHINGTON, March 2 (Xinhua) -- U.S. consumer sentiment rose to its second highest level since 2004 in February due to strong labor market and tax cuts, according to a survey released by the University of Michigan on Friday.

The index of consumer sentiment rose to 99.7 in February, higher than the reading of 95.7 in January, the survey showed.

"The highest proportion of households since 1998 reported that their finances had improved compared with a year ago and anticipated continued gains during the year ahead," said Richard Curtin, chief economist of the survey.

"Economic news heard by consumers continued to be dominated by the tax reform legislation and net job gains, which was untarnished by the consensus view that interest rates would increase and stock prices would remain volatile," he added.

U.S. President Donald Trump signed a 1.5-trillion-U.S. dollar tax cuts deal into law last December. The survey showed personal tax cuts are crucial to spur additional spending.

"Overall, the data signal an expected gain of 2.9 percent in real personal consumption expenditures during 2018," said Curtin. Enditem