US consumer sentiment climbed to a more than one-year high in early February as more upbeat views of current conditions outweighed lingering concerns about the outlook.
The University of Michigan’s preliminary index of sentiment for the month increased to 66.4 from 64.9 in January, data showed Friday. A closely watched gauge of price expectations over the coming year rose to 4.2% from 3.9%, but remained well below levels seen in the first half of last year.
Consumers expect inflation to rise 2.9% over the next five to 10 years, unchanged from the prior two months.
The figures precede the release of closely watched inflation data next week. The government’s consumer price index is anticipated to rise in January at the fastest pace in three months.
The sentiment report showed an index of current conditions strengthened to 72.6 from a January reading of 68.4. A rebound in stocks helped fuel optimism about personal finances among those with large equity holdings, the university said.
However, consumers were less sanguine about the outlook as the Michigan gauge eased to 62.3 from 62.7.
“Combined with concerns over rising unemployment on the horizon, consumers are poised to exercise greater caution with their spending in the months ahead,” Joanne Hsu, director of the survey, said in a statement.
--With assistance from Chris Middleton.
This article was provided by Bloomberg News.