The University of Michigan Consumer Sentiment Index increased to 54.4 in July. The gain reflects easing gas prices and lower inflation expectations.
The preliminary July reading marked a 9.9 percent rise from June. The Current Economic Conditions Index climbed 15.1 percent to 54.9. The Consumer Expectations Index increased 6.5 percent to 54.0.
Year-ahead inflation expectations fell to 4.2 percent from 4.6 percent in June. Analysts linked the improvement to lower fuel costs.
The data represent the strongest sentiment reading since February. The figures come from the university's monthly survey of consumer attitudes.
