The latest data from the University of Michigan's consumer sentiment survey reveals a pleasant surprise for the US economy. The headline consumer sentiment index came in at 73.0, exceeding the expected reading of 71.0. This suggests that American consumers remain optimistic about the economic landscape, despite the persistent challenges of inflation.

Further analysis of the data paints an even more encouraging picture. One-year inflation expectations dropped to 2.6%, down from the anticipated 2.7%. Additionally, the 5-10 year inflation outlook ticked down to 3.1%, slightly below the 3.0% forecast.