U.S. consumer sentiment rebounded in early June, beating expectations, according to a report released on Friday. (Tweet this)
The Thomson Reuters/University of Michigan’s preliminary June reading on the index was 94.6. That beats the previous month’s reading of 90.7 and Reuters’ estimates for 91.5.
“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,” said Surveys of Consumers Chief Economist Richard Curtin in a statement.
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Consumers expected the inflation rate to remain low in the near future. “The expectation of rising interest rates has caused consumers to view current rates as attractively low, but it has not yet prompted the belief that it would be better to borrow-in-advance of future increases,” Curtin said.
So far, the June data is consistent with a 3 percent annual growth rate in real personal consumption expenditures this year.
The gauge of current economic conditions rose to 106.8 from 100.8 in the previous month.
Consumer expectations index also rose to 86.8 from 84.2 in May.