US consumer sentiment perks up in July

WASHINGTON, July 31 (Reuters) - U.S. consumer sentiment improved in July, though concerns about the higher cost of living lingered, a survey showed on Friday.

The University of Michigan's Surveys of Consumers said on Friday its Consumer Sentiment Index increased to a final reading of 55.2 from 54.4 earlier this month. The index was at 49.5 in June. Economists polled by Reuters had forecast the index dipping to a final reading of 54.0.

The survey was conducted between June 23 to July 27. The improvement was despite average gasoline prices rising back above $4 a gallon amid renewed hostilities in the Middle East.

"Broad-based improvements were seen across all groups by income, education, wealth, age, and political party," said Joanne Hsu, the director of the Surveys of Consumers. "Consumers remain focused on pocketbook issues like purchasing power, while political or military developments remain more in the background."

The survey's measure of consumer expectations for inflation over the next year dropped to a still-high 4.2% from 4.6% in June. Consumers' expectations for inflation over the next five years held steady at 3.3%. Government data this month showed a moderation in consumer inflation in June.