While the University of Michigan released a report on Friday showing a modest downward revision to its reading on U.S. consumer sentiment in the month of January, the index remained at an eleven-year high.
The report said the consumer sentiment index for January was downwardly revised to 98.1 from the mid-month reading of 98.2.
The consumer sentiment index still remains well above the final December of 93.6 and is at its best level since reaching 103.8 in January of 2004.
The survey's gauge of consumer expectations in January was downwardly revised to 91.0 from 91.6 but remained well above the 86.4 recorded for December.
Meanwhile, the reading on current economic conditions in January was upwardly revised to 109.3 from 108.3 and is well above 104.8 in the previous month.
Richard Curtin, the survey's chief economist, said, "While renewed strength in consumer spending will boost the pace of economic growth in 2015, most consumers are counting only on modest income gains during the years ahead."
"Without sufficient wage gains, consumers will be forced to demand large price discounts to complete their purchases, adding to disinflationary pressures," he added.
The report said one-year inflation expectations fell to 2.5 percent in January from 2.8 percent in December, while the five-year inflation outlook was unchanged at 2.8 percent.
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