U.S. consumer sentiment in the month of April showed an unexpected improvement compared to the previous month, according to revised data released by Reuters and the University of Michigan on Friday.
The report showed that the consumer sentiment index for April came in at 76.4 compared to the mid-month reading of 75.7. Economists had been expecting a much more modest upward revision to a reading of 75.8.
With the much bigger than expected upward revision, the index came in above March's final reading of 76.2 and is at its highest level since February of 2011.
However, Peter Boockvar, managing director at Miller Tabak, said, "While the best in more than a year, confidence is a coincident indicator and thus tells us little about how consumers will react in terms of spending in the months to come."
The report showed that the current economic conditions index for April was upwardly revised to 82.9 from 80.6 but still came in below the March reading of 86.0.
Meanwhile, the consumer expectations index for April was downwardly revised to 72.3 from 72.5 but still came in above March's 69.8.
On the inflation front, the report showed that one-year inflation expectations eased to 3.2 percent in April from 3.9 percent in March. Five-year inflation expectations dipped to 2.9 percent from 3.0 percent.
by RTT Staff Writer
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