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Consumer sentiment rises to highest since January

WASHINGTON - Consumer sentiment in June advanced to the highest level since January, suggesting that Americans will be spending more as the year progresses.

The University of Michigan says its consumer sentiment index rose to 96.1 this month from 90.7 in May. The June reading was the highest since January's 98.1.

"Consumer confidence is nice to look at but I don't think it tells us anything about the economic future as it's a coincident indicator instead," emailed Peter Boockvar, chief market strategist at the Lindsey Group.

"The bond market is not waiting around for the Fed to tighten policy," Boockvar added of rising yields.

For the first six months of 2015, consumer optimism improved at the fastest pace since 2004, three years before the Great Recession, said Richard Curtin, chief economist for the Michigan survey.

Curtis says the readings are consistent with a 3 percent increase in consumer spending this year. The Commerce Department said this week that consumer spending rose at an annual pace of 2.1 percent from January through March.

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