The final reading for the January Reuters/Michigan index of consumer sentiment came in at 98.4 compared to a preliminary reading of 90.7 and the February final reading of 93.8.

That was the highest reading since October 2018.

Economists had forecast the index to be unrevised at 97.8. 

The report noted that advance in the sentiment index was entirely due to more positive assessments from middle and lower income households, which more than offset a drop in sentiment among upper income households. 

According to the report, the index of the current economic conditions rose to 113.3 from February’s final reading of 108.5. 

Meanwhile, the index of consumer expectations increased to 88.8 from February’s final reading of 84.4.

Overall, the data do not indicate an emerging recession but point toward slightly lower unit sales of vehicles and homes during the year ahead, the report says.