U.S. consumer sentiment rebounded in May to the highest level in almost six years as Americans felt better about their financial and economic prospects, particularly among high-income households, the University of Michigan reported Friday. The university's preliminary May reading on consumer sentiment rose sharply to 83.7 from 76.4 the previous month, surpassing economist expectations for 78. It was the highest reading since July 2007. The report's gauge of current economic conditions jumped to 97.5 from 89.9, the highest since October 2007, while the measure of consumer expectations advanced to 74.8 from 67.8. More consumers provided a favorable view of their personal finances than any time since 2007, with the biggest gains among households in the upper third of income levels. More respondents also thought the economy would continue to improve in the coming year. Economists closely watch consumer-confidence indexes for clues on consumer spending, which accounts for about 70 percent of U.S. economic activity.
