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Consumer confidence up, Reuters survey says

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U.S. consumer sentiment rose to an eight-month high in early February, according to consumer surveys from Thomson Reuters and the University of Michigan, but long-term worry still exists.

The consumer sentiment index reading was 75.1 today, up from 74.2 in January. It is at the highest level since June 2010. The index averaged 89 in the five years leading up to the recession that began in December 2007.

The index report said consumers expect to see improvement in the economy and the job market this year, but the recovery is expected to stall based on future confidence levels.

Still, the results are “further proof that the U.S. economy is rebounding at a stronger pace than expected,” said Michael Woolfolk, senior currency strategist at BNY Mellon in New York, in an interview with Reuters. “It’s been reflected in virtually all recent data outside of inflation data.”

Though consumers are optimistic about the labor market, they are worried about inflation in the long term, the study found. The survey showed that one-year inflation expectation is 3.4 percent, the highest rate since the fall of 2008.

The conditions gauge, which measures consumers’ perceptions of their financial situation, increased to 86.8, up from 81.8 in the previous month. But the index of consumer expectations six months from now decreased to 67.6 from 69.3.