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From Reuters:
U.S. consumer confidence rose to a nine-month high in June but failed again to surpass its level of September 2008, when the spectacular failure of Lehman Brothers sent the world economy into a tailspin, a survey showed on Friday.
The Reuters/University of Michigan Surveys of Consumers said its preliminary index of confidence for June rose to 69.0 from May's 68.7. That was slightly below economists' expectations of 69.5, according to a Reuters poll.
Worryingly, the report's gauges of inflation expectations rose to their highest in months, creating concern for the Federal Reserve, which has pumped money into the financial system to spur recovery from the worst recession in decades.
For the third month now the overall consumer sentiment reading was at its highest since the Lehman debacle last September, which caused severe strains in financial markets, while not breaking through that month's level of 70.3.
Note the following points:
1.) This is the fourth increase in a row. That's important.
2.) As the article notes, we're still not above last September's level. While I am please to see the increases I will be happier when the number is above previous levels.
3.) The inflation expectation is worrying because it indicates people may start to act on inflation expectations.
However -- and overall -- this is a good report.
