U.S. consumer sentiment rose for a second consecutive month in July, reaching its highest level since February, according to the University of Michigan's preliminary survey.

The headline index increased to 54.4 from 49.5 in June. The measure of current economic conditions rose to 54.9, while consumer expectations climbed to 54.0. The improvement appeared across age, income, wealth and political groups and was supported by gasoline-price relief earlier in the survey period.

The rebound does not mean households are broadly confident. Sentiment remains nearly 12 percent below its level a year earlier. Expectations for inflation over the next year eased to 4.2 percent from 4.6 percent, while longer-run expectations held at 3.3 percent.

Timing is an important limitation: interviews ran from June 23 through July 13, and more than 70 percent were completed before U.S. strikes against Iran resumed on July 7 and energy prices rose again. The university will release final July results on July 31, so the preliminary reading may change.

Source: University of Michigan Surveys of Consumers ↗

Source: Reuters ↗