The University of Michigan's final reading of consumer sentiment in June extended the early-month improvement and rose 10.5% versus May to 96.0, the highest level this year. Consensus expectations had been for a lesser increase to 94.6.

During the last ten years there has been a 74% correlation between the level of consumer sentiment and the y/y change in real PCE, although the correlation has fallen in recent years.

The reading of current economic conditions improved sharply late in the month and for June overall rose 7.9% to the highest level since late 2000.

Consumer expectations added slightly to the gain earlier in the month and surged 12.9% following five months of decline.

The University of Michigan survey is not seasonally adjusted.The mid-month survey is based on telephone interviews with 250 households nationwide on personal finances and business and buying conditions. The survey is expanded to a total of 500 interviews at month end.

Consumption Taxes: Macroeconomic Effects and Policy Issues from the Federal Reserve Bank of Kansas City can be found here.