The Thomson Reuters/University of Michigan Consumer Sentiment Index rose from a preliminary June reading of 94.6 to a final June reading of 96.1. That is the highest reading since January of this year and, other than the January score, the highest since 2007.
Economists polled by Bloomberg were expecting a final June reading of 94.6.
The index jumped on the strength of respondents’ views of both current conditions and expectations. The current conditions index rose from a May reading of 100.8 to 108.9. The consumer expectations index rose from 84.2 in May to 87.8.
Across all households during the first half of 2015, an income increase of 1.5% was expected, down from 2.5% in the first half of 2007.
The survey’s director, Richard Curtin, said:
The remarkably favorable economic assessments documented in the recent surveys were due to two factors. An improving economy was the most important component. But the gains were so outsized that they probably reflected the acceptance of a new lower comparison standard that was based on diminished expectations for long-term economic prospects.
The fewest consumers at any time since August 2000 said that the economy had worsened. According to the survey, when averaged over the first half of 2015, consumers are more likely “to expect good times in the economy” than at any time since 2000.
Total consumer spending is now expected to increase by 3% in 2015.
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