Consumer confidence rises as wages pick up

Consumer confidence rebounded in early June back to the average recorded at the beginning of the year, according to a new University of Michigan survey.

The confidence index jumped to 94.6, up from the 90.7 recorded in May.

{mosads}Increasing wages, the University of Michigan said, are contributing to the boost in consumer sentiment. In fact, households are expecting the largest wage gains this month since 2008.

In addition, the university said consumers expect the inflation rate to remain low for the foreseeable future.

The level of consumer sentiment largely reflects the level recorded in 2007, before the recession hit.

The latest numbers come just a week after the Bureau of Labor Statistics reported that the economy added a strong 280,000 jobs last month. The unemployment rate went up slightly to 5.5 percent because of more workers re-entering the labor market.