U.S. consumer sentiment improved unexpectedly in early June, as inflation expectations have fallen since May, a report showed Friday.
The University of Michigan’s preliminary early June index of consumer sentiment was 82.4, up from May’s final reading of 79.1, said sources who saw the subscription-only report.
The median forecast of 63 Wall Street economists polled by Reuters was for a 79.0 reading.
The median, one-year U.S. inflation expectation was 3.4 percent in June, down from 4.0 percent in May. The five-year median U.S. inflation expectation was 3.0 percent in June, down from 3.2 percent in May.
The survey’s index of current conditions rose to 103.1 in June from 96.1 in May, while consumer expectations climbed to 69.2 in June from 68.2 in May.
Consumer spending accounts for about two-thirds of all U.S. economic activity, but in recent years confidence measures have been a weak guide to actual spending plans.