Consumer sentiment brightens on current economy
WASHINGTON (MarketWatch) - Consumer sentiment rose this month, reversing a chunk of the prior month's drop, with cheerier views about current conditions, according to data released Friday.
The overall sentiment gauge from the University of Michigan and Thomson Reuters rose to a final June reading of 82.5 from a final May level of 81.9. Economists polled by MarketWatch had expected a final June level of 81.9, compared with an estimate earlier this month of 81.2. For context, the gauge averaged 86.9 over the year leading up to the recession.
U.S. stocks held onto losses after the sentiment data.
Economists watch sentiment levels to get a feeling for the direction of consumer spending. On Thursday, the government reported that consumer spending rose last month, driven by auto sales.
Although consumers recently found out that the economy saw a surprisingly sharp contraction in the first quarter, they've been cheered by better job-market readings, according to the sentiment report.
'Consumers did not expect such a negative [gross domestic product] report, but it will not cause them to revise their expectations of future economic growth,' said Richard Curtin, chief economist for the consumer survey.
Details of the UMich report show that a gauge of consumers' views on current conditions rose to 96.6 in June from 94.5 in May. Meanwhile, a barometer of their expectations ticked down to 73.5 from 73.7.
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