US consumer sentiment rises in April, but inflation expectations rise

By Ovunc Kutlu

ISTANBUL (AA) – US consumer sentiment rose in April, beating the market estimates, but inflation expectations showed an increase, according to the University of Michigan's consumer survey preliminary results released Friday.

The index of consumer sentiment rose 1.5 percentage points to 63.5, from 62.0 in March when it recorded the first decline in four months.

The market expectation for the index was to remain unchanged at 62.0.

"Sentiment is now about 3% below a year ago but 27% above the all-time low from last June. Rising sentiment for lower-income consumers was offset by declines among those with higher incomes," Surveys of Consumers Director Joanne Hsu said in a statement.

Year-ahead inflation expectations, however, rose one percentage point to 4.6% in April, from 3.6% in March

"While consumers have noted the easing of inflation among durable goods and cars, they still expect high inflation to persist, at least in the short run," said Hsu.

The index of current economic conditions increased 2.3 points to 68.6 in April, from 66.3 in March, according to the results.

The index of consumer expectations added 1.1 points to 60.3 from 59.2 during that period.