University of Michigan consumer sentiment shows strong gains in early June

The University of Michigan index of consumer sentiment rose to 94.6 in the preliminary June reading, solidly above consensus expectations (91.2). The current conditions index surged 6 points, to 106.8, the highest level since Feb. Consumer expectations improved as well in early June to 86.8. Consumers' assessment of current personal finances moved up an impressive 10 points to 121, in a return to the post-recession high first printed in Jan.  

Elsewhere, both year-ahead and 5-10 year inflation expectations fell one-tenth, to 2.7%. The index of buying conditions for durables rose to 156, which, in our view, suggests that the pickup in durables consumption seen in motor vehicle and retail sales in May is likely to carry over into June, said Barclays 

The details of this morning's release show that labor market strength continues to boost the outlook for the consumer; net income gains were reported for the fifteenth consecutive month, and households expect further gains of 2.2% over the next year. On balance, the stronger-than-expected print for consumer sentiment in early June supports our expectation of solid consumption growth over the next several months, adds Barclays