U.S. Consumer Sentiment Improves More Than Expected In April

(RTTNews) - Consumer sentiment in the U.S. has improved by more than anticipated in the month of April, according to a report released by Thomson Reuters and the University of Michigan on Friday, with the consumer sentiment index reaching a nine-month high.

The report showed that the preliminary reading on the consumer sentiment index for April came in at 82.6 compared to the final March reading of 80.0. Economists had expected the index to inch up to a reading of 81.0.

With the bigger than expected increase, Reuters said the consumer sentiment index reached its highest level since last July.

Paul Diggle, an economist at Capital Economics, said the increase by the index "reflects a reversion of the earlier weather-related hit to confidence as well as record high stock markets and improving labor market conditions."

"These numbers suggest that consumption growth got off to a decent start in the second quarter," Diggle added.

The bigger than expected increase by the consumer sentiment index reflected improvements in both expectations as well as the assessment of current conditions.

The report showed that the gauge of consumer expectations climbed to 73.3 in April from 70.0 in March, while the barometer of current economic conditions rose to 97.1 from 95.7 in the previous month.

On the inflation front, one-year inflation expectations dipped to 3.1 percent in April from 3.2 percent in March, but the five-to-ten-year inflation outlook edged up to 3.0 percent from 2.9 percent.