New data from the University of Michigan shows consumer sentiment rose in June, with the reading the highest since January. Bobbi Rebell reports.
The consumer is feeling better about the U.S. economy, the most upbeat since January. The University of Michigan's final reading on the overall index on consumer sentiment for June was 96.1, higher than its preliminary reading, and up sharply from its May reading of 90.7. But Mizuho Securities' Steve Ricchiuto says, feeling good about the economy only goes so far: SOUNDBITE: STEVEN RICCHIUTO, CHIEF ECONOMIST, MIZUHO SECURITIES (ENGLISH) SAYING: "If people do what we, economists, call econometric models, sentiment always shows up to be a very, very important driver of future economic conditions, but, in reality, since the financial crisis, that has not been the case. And, I think, part of that is because there is a separation between how I feel vs. what I actually feel comfortable doing." He says the consumer spending data that came out earlier this week, showing the largest increase in almost six years, only tells part of the story. SOUNDBITE: STEVEN RICCHIUTO, CHIEF ECONOMIST, MIZUHO SECURITIES (ENGLISH) SAYING: "When you look at some of the retailers numbers that we are seeing, you are seeing a lot more of the spending coming out in terms of things that are being incentivized, you know, sales, marketing aspects, we are seeing those kinds of things, especially in the automobile space where a lot of it has been incentivized sales." He says that consumer sentiment won't truly be strong until shoppers are ready to spend without being lured by heavy discounts.