U.S. consumer sentiment unexpectedly rose to a three-month high in early April as optimism about job growth and wage expectations more than outweighed decades-high inflation.
The University of Michigan's sentiment index increased to 65.7, from 59.4 in March, according to data released Thursday. That figure exceeds all estimates in a Bloomberg survey of economists, which had a median forecast of 59. Moreover, the survey's measure of future expectations climbed to 64.1, the highest since January. The monthly increase of almost 10 points was the largest since 2006. A gauge of current conditions increased to 68.1.
Consumers still expect inflation to rise 5.4 percent over the next year, and their expectations for price increases in the next 5 to 10 years remains at 3 percent. That's a good sign that they don't see inflation worsening much more.
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