Last Update: 02-Jul-15 16:52 ET
- The University of Michigan Consumer Sentiment Index was revised up to 96.1 in the final June reading from a preliminary reading of 94.6. That is up from a reading of 90.7 in May. The Briefing.com Consensus expected the Consumer Sentiment Index to remain at 94.6.
- That was the best reading since the Consumer Sentiment Index reached 98.1 in January.
- The gain in sentiment was likely a reaction to large improvements in labor market conditions. That offset concerns about higher gasoline prices.
- The Expectations Index increased to 87.8 in June from 84.2 in May. The Current Conditions Index increased to 108.9 from 100.8.
- Gains in consumers sentiment do not necessarily translate into consumption growth. Consumption relies on income growth. As long as income continues to push higher, consumption growth should follow.
- Consumer sentiment has little influence on consumption. As long as payroll levels continue to expand, the resulting income growth should keep consumption gains steady regardless of the monthly ebbs and flows in sentiment.