Consumer Sentiment Jumps in June

Consumers are very optimistic about the economy this month.

The University of Michigan final June sentiment index came in at 96.1, better than the preliminary reading of 94.6 and well above the end-May level of 90.7. The index had reached an 11-year high of 98.1 in January.

Economists surveyed by The Wall Street Journal projected the end-June index to stand at 95.0.

"Consumer spending will remain the driving force of economic growth in 2015. Overall, the data indicate growth in consumer spending of 3.0% in 2015," said Richard Curtin, chief economist at Michigan's Survey of Consumers that compiles the sentiment index.

Mr. Curtin said the increase in sentiment so far this year was evident across all income categories.

This month's final current conditions index increased to 108.9 from the end of May reading of 100.8. The expectations index advanced to 87.8 from 84.2.

Despite the rebound in gasoline and egg prices, consumers have a muted view on inflation. According to the Michigan survey, the one-year inflation expectations for all of June fell to 2.7% from 2.8% all of May. Inflation expectations covering the next five years slowed to 2.6% from 2.8%.