(CEP News) - U.S. consumer sentiment moved beyond expectations in April, confirming economist predictions that healthier stock markets would boost confidence.

According to the preliminary report from Reuters and the University of Michigan on Friday, the headline consumer sentiment index grew to 61.9 from a final reading of 57.3 in March, despite expectations for a rise to 58.5.

Respondents to the survey were more positive about the current situation, which rose to 66.6 from 63.3 the month prior. Also, the outlook indicator increased to 58.9 in March from 53.5.

The report also noted mixed inflation expectations for the United States, with consumers seeing a 3.0% rate of inflation over the next 12 months and a 2.7% rate over the next five years. In March, these expectations were 2.0% and 2.6%, respectively. The jump in one-year inflation expectations represents the largest increase since 2005.

By Megan Ainscow, mainscow@economicnews.ca, edited by Ernest Hoffman, ehoffman@economicnews.ca

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Posted in Categories: Economy, Releases, USA.

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