Consumer sentiment hits three-month high

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CNBC Rick Santelli has an effort the latest consumer sentiment. The number is 73.6, better than last month and slightly above expectations.

Two economic reports released Friday draw a somewhat rosier picture of the economy.

Consumer sentiment improved in early August rose spurred to its highest level in three months as sales at retailers and low mortgage rates Americans to increase their purchase plans, a survey showed on Friday.

But worry about rising food prices caused a jump in both short and term inflation expectations the Thomson Reuters/University of Michigan consumer survey showed sentiment.

In a separate report, improved gauge of future economic activity in July on a drop in new claims for unemployment benefits and an increase in the permits, housing, although the reading still sluggish growth ahead pointed out.

The Conference Board, said on Friday that its leading economic index climbed 0.4 per cent to 95,8, reversing a decline of 0.4 percent in June. By Reuters respondents analysts had predicted the index would rise 0.2 percent in July.

Fewer jobless claims last month the biggest driver in the growth of the index, said the Conference Board was. In addition, building permits during the months that could point to more construction on the road jumped.

The first reading on the index of consumer sentiment rose to its highest level since May to 73.6 from 72,3 last month, topping forecasts of by economists for a slight uptick to 72,4.

Atmosphere "Even though the rate of growth in personal consumption, expenditure can be expected from the second quarter lull, growth rebound can be expected to just under two percent 2013 remain to the end of the first quarter," said survey Director Richard Curtin in a statement.

The survey barometer of current economic conditions rose to 87,6 of 82,7, but the survey gauge of consumer expectations fell to 64.5 from 65,6. expectations were at their lowest level since December.

Pick the view that economic growth will be in the second half of the year has strong retail sales in July but lackluster remain increased. Growth and the setting were disappointing in the spring, raising expectations that the Federal could develop reserve more stimulus packages.

The Conference Board leading economic references "slow growth by the end of 2012" according to Ken Goldstein, an economist at the organization index.

"But sales are better than expected, suggest that the consumer starts to school again," he added.

Reuters contributed to this report.