Editor's Note: The article was updated to include comments from TD Securities.
(Kitco News) - U.S. consumer sentiment was on the rise for the beginning of the month, according to the Thomson Reuters/University of Michigan preliminary consumer sentiment index for April, released Friday .
The overall sentiment reading increased to 82.6 from March’s final reading of 80.0. According to media reports, economists had expected to see a reading between 81.0 and 81.2.
According to media reports, this is the highest reading since July.
Looking at the components of the report, the index for consumer expectations rose to 73.3 from the final March reading of 70.0. Inflation expectations fell to 3.1% from the final reading of 3.2%.
Looking at the components of the report, the index for consumer expectations rose to 73.3 from the final March reading of 70.0. Inflation expectations fell to 3.1% from the final reading of 3.2%.
Warmer weather, an improving economy and labor market were probably the biggest contributors to the broad-based gains shows in April’s consumer sentiment data, said Gennadiy Goldberg, U.S. strategist at TD Securities.
Although the headline data hitting a four-month high was impressive, Goldberg said that the expectations component was even strong, hitting a nine-month high.
However, he added that the improved sentiment so far hasn’t translated into increased spending as relative buying conditions deteriorated during the month.
According to some analysts, next week’s retail sales data will be an important indictor to determine if the improved sentiment leads to more purchases and a pick-up in economic activity.
By Neils Christensen of Kitco News; nchristensen@kitco.com
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