Consumer Sentiment Improves

U.S. consumer sentiment improved further in February, but households expected higher inflation to persist over the next 12 months, a survey showed Friday.

The University of Michigan's preliminary February reading on the overall index of consumer sentiment came in at 66.4, up from 64.9 in the prior month. Economists polled by Reuters had forecast a preliminary reading of 65.0.

The survey's reading of one-year inflation expectations increased to 4.2% this month from 3.9% in January.

Its five-year inflation outlook was unchanged at 2.9% for the third straight month and stayed within the narrow 2.9-3.1% range for 18 of the last 19 months.