WASHINGTON (MarketWatch) - U.S. consumer sentiment was the most optimistic in more than two years in June, but remained far below normal levels, according to a survey released Friday by Reuters and the University of Michigan.
The UMich index rose to 76.0 in late June, up from 73.6 in May and 75.5 in mid-June. It was the highest since January 2008, the month after the recession began.
Economists were expecting the UMich index to come in at 75.5. See our complete economic calendar and consensus forecast. AM Report: Reshaping the rules of Wall Street
The average level of the index over the past 33 years is around 87.
Consumers expect a very slow pace of economic growth, the survey said. Twice as many households reported declining incomes as rising incomes. More than half of households expect no increase in their own income in the coming year. Read the full release.
In June, the current conditions index improved to 85.6 from 81.0, while the expectations index rose to 69.8 from 68.8.
"The June survey indicated that consumers expect economic growth to slow, and as a result, anticipate that the unemployment rate will remain largely unchanged through the balance of the year," said Richard Curtin, chief economist for the UMich survey. "Weak financial prospects, including lackluster job and income growth as well as tight credit remain the primary constraint to a more robust spending outlook."
In a separate report, the Commerce Department said U.S. gross domestic product increased at a 2.7% annual pace in the first quarter of the year, revised down from a 3% estimate. See full story on GDP revision.
