WASHINGTON (Reuters) -U.S. consumer sentiment rebounded in early June as inflation fears subsided and households grew more optimistic about future economic growth and employment, a survey showed on Friday.
The University of Michigan said its preliminary consumer sentiment index increased to 86.4 in the first half of this month from a final reading of 82.9 in May. Economists polled by Reuters had forecast the index rising to 84.
“Stronger growth in the national economy was anticipated, with an all-time record number of consumers anticipating a net decline in unemployment,” survey director Richard Curtin said in a statement.
The survey’s gauge of current economic conditions edged up to a reading of 90.6 from 89.4 in May. Its measure of consumer expectations rose to 83.8 from 78.8. The survey’s one-year inflation expectations fell to 4.0% from 4.6%, while its five-to-10-year inflation outlook dropped to 2.8% from 3.0% in May.
While consumers have a brighter view of the job market and economy than they did in May and their inflation worries eased somewhat, people still remain concerned about high prices for things such as cars and homes.
“Spontaneous references to market prices for homes, vehicles, and household durables fell to their worst level since the all-time record in November 1974,” Curtin said. “These unfavorable perceptions of market prices reduced overall buying attitudes for vehicles and homes to their lowest point since 1982.”
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