Reports Show Signs of Slow Economic Recovery
The University of Michigan's final June consumer sentiment index rose to 92.6 in June from 92.0 in May, well above the preliminary reading of 91.6 released two weeks ago.
The index, which is closely watched by economists and measures consumers' attitudes about the economy, has risen two full points since hitting 90.6 in February, its lowest reading in almost five years.
In addition, the National Association of Purchasing Management-Chicago said Friday that its index of manufacturing rose in June to its highest point of 2001, suggesting that weakness may be ebbing at factories.
Also Friday, the Commerce Department said that gross domestic product -- the country's total output of goods and services -- grew at an annual rate of 1.2% from January to March, according to revised figures.
Reuters said that economists were expecting the final first-quarter reading on GDP to be unchanged from the 1.3% rate of growth estimated one month ago. The biggest drag came from companies struggling to get rid of their unsold goods.
Despite this slow growth, the University of Michigan survey rose for the second straight month as the expectations index, a gauge of how Americans feel about the 12 months ahead, rose to 86.9 in June from 85.4 in May. The preliminary reading was 84.9.
And NAPM reports similar to the one released Friday will likely increase consumer confidence and expectations in the months ahead.
The Chicago index rose to 44.4 from 38.7 in May, which was much stronger than the 42.1 economists polled by Reuters were predicting.
An index below 50 signals a contracting manufacturing economy, while a reading above 50 suggests expansion. The Chicago index has remained below 50 since last September.
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