US Consumer Sentiment Index Rises to 94.6, Surpasses Analysts Forecast for June

The recovering US economy is clearly reflected in the University of Michigan's June index of consumer sentiment which recorded a significant rise to 94.6 as compared to the May statistics of 90.7.

The June statistics have surpassed the median projection of the Bloomberg survey of 68 economists that estimated an average of 91.2 for June.

The index of expectations of the sentiment survey also increased to 86.8 from 84.2 last month. Even, the index of current conditions, which measures Americans' views of their personal finances, also rose to 106.8 in June from 100.8 in May.

The positive consumer sentiment can be attributed to healthy wage prospects, the highest recorded in seven years in the US market. Amidst rising gasoline prices, robust job gains and rising pay packages have upheld consumer confidence.

David Berson, chief economist at Nationwide Insurance in Columbus, Ohio, stated," The job market's looking pretty good right now. The trend should be upward. It's quite likely that we're going to see strong economic growth in the second half of the year".

Richard Curtin, director of the Michigan Survey of Consumers, informed that the June data is consistent with a 3% annual growth rate in real personal consumption expenditures during 2015. He added that it signals that the majority of consumers anticipated good times in the economy as a whole during the year ahead.

The survey revealed that the Americans expected an inflation rate of 2.7% in the next year as compared to the expectation of 2.8% recorded in May.

However, the Bloomberg Consumer Comfort Index decreased to 40.1 in the period ended June 7, from 40.5 the prior week.