US consumer sentiment rises to four-month high in June

WASHINGTON (Reuters) – U.S. consumer sentiment rose to a four-month high June, lifted by easing inflation fears and the resolution of the debt ceiling crisis, a survey showed on Friday.

The University of Michigan’s preliminary reading on the overall index of consumer sentiment came in at 63.9 this month from 59.2 in May. Economists polled by Reuters had forecast a preliminary reading of 60.0. The index is now 28% above the historic low from a year ago.

“A majority of consumers still expect difficult times in the economy over the next year,” said Surveys of Consumers Director Joanne Hsu in a statement.

The survey’s reading of one-year inflation expectations dropped to 3.3% this month from 4.2% in May. Its five-year inflation outlook was little changed at 3.0%, staying within the narrow 2.9-3.1% range for 22 of the last 23 months.

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