After reporting a record nosedive in U.S. consumer sentiment in March and April, the University of Michigan released a report on Friday showing sentiment continued to improve in June following a modest rebound in May.
The preliminary report showed the consumer sentiment index for June climbed to 78.6 from 72.3 in May and 71.8 in April. Economists had expected the index to rise 75.0.
Surveys of Consumers chief economist Richard Curtin said the increase by the index reflected gains in the outlook for personal finances and more favorable prospects for the national economy due to the reopening of the economy.
“The turnaround is largely due to renewed gains in employment, with more consumers expecting declines in the jobless rate than at any other time in the long history of the Michigan surveys,” Curtin said.
However, he added, “Despite the expected economic gains, few consumers anticipate the reestablishment of favorable economic conditions anytime soon.”
The bigger than expected increase by the headline index came as the current economic conditions index advanced to 87.8 in June from 82.3 in May and the index of consumer expectations jumped to 73.1 from 65.9.
On the inflation front, one-year inflation expectations dipped to 3.0 percent in June after spiking to 3.2 percent in May, while five-year inflation expectations edged down to 2.6 percent from 2.7 percent.