Economics

U.S. Consumer Sentiment Unexpectedly Rises Amid Relief Payments

  • Current-conditions index gains while expectations drop
  • Year-ahead inflation expectations increase to 3 percent
A person wearing a protective mask walks inside the Yuba Sutter Mall in Yuba City, California on May 13.Photographer: David Paul Morris/Bloomberg
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U.S. consumer sentiment posted a surprise increase in early May amid widespread virus-relief payments and discounts for big-ticket items, though pessimism deepened about the longer-term outlook for incomes and the economy.

The University of Michigan’s preliminary sentiment index rose 1.9 points from an eight-year low to 73.7, according to data Friday. That compared with the median estimate for a decline to 68 in a Bloomberg survey of economists.