U.S. Consumer-Sentiment Rebound Tops Forecasts After Shutdown

U.S. consumer sentiment rebounded by more than forecast from a two-year low, suggesting recent weak retail sales will be a temporary blip after the government shutdown ended and the Federal Reserve signaled it would hold off on interest-rate hikes.

The University of Michigan’s preliminary February sentiment index rose to 95.5, exceeding the median forecast in a Bloomberg survey for an increase to 93.7. The measure of current conditions rose 1.2 point while the expectations gauge jumped 6.3 points, indicating the rise in sentiment was concentrated in the outlook.