U.S. Consumer Sentiment Improves Much More Than Expected In June

(RTTNews) - Consumer sentiment in the U.S. has improved by much more than anticipated in the month of June, according to a report released by the University of Michigan on Friday.

The report said the preliminary reading on the consumer sentiment index for June came in at 94.6 compared to the final may reading of 90.7. Economists had expected the index to show a much more modest increase to 91.2.

The bigger than expected increase by the headline index was partly due to a notable improvement in the assessment of current conditions, as the current economic conditions index jumped to 106.8 in June from 100.8 in May.

Consumer expectations also improved compared to the previous month, however, with the index of consumer expectations climbing to 86.8 from 84.2.

Richard Curtin, the survey's chief economist, said, "Consumer confidence rebounded in early June, regaining its average level recorded since the start of the year."

"The June gain was due to the most favorable personal financial prospects since 2007, with households expecting the largest wage gains since 2008," he added. "Just as importantly, consumers expected the inflation rate to remain low over the foreseeable future."

The report said one-year and five-year inflation expectations both edged down to 2.7 percent in June from 2.8 percent in May.