U.S. consumer sentiment jumps most since 2016 on gain in jobs

U.S. consumer sentiment climbed in early June by the most since 2016 as more states began to reopen their economies and employers restored jobs.

The University of Michigan’s preliminary sentiment index increased 6.6 points to 78.9, according to data Friday. The median projection in a Bloomberg survey of economists called for a gain to 75. Even with the improvement, the gauge remains well below pre-pandemic levels.

The gauge of current conditions advanced 5.5 points to 87.8 this month, while a measure of expectations jumped 7.2 points to 73.1.

The increase in sentiment highlights optimism that the reopening of the U.S. economy will restore jobs and help spur the spending needed to dig out of a deep recession. Still, two-thirds of respondents anticipated unfavorable economic conditions in the year ahead because of concerns about a resurgence in the coronavirus as well as lingering weakness in the job market.

“Despite the expected economic gains, few consumers anticipate the reestablishment of favorable economic conditions anytime soon,” Richard Curtin, director of the survey, said in a statement.

The university’s sentiment data are consistent with a weekly Bloomberg measure. The index of consumer comfort advanced in the first week of June to a six-week high as higher stock prices and the return to work for Americans continued to lift attitudes about personal finances, a report showed Thursday.