UPDATE 2-US May consumer sentiment hits more than 4-yr high

NEW YORK, May 11 (Reuters) - U.S. consumer sentiment rose to
its highest in more than four years in early May as Americans
remained upbeat about the job market, a survey released on
Friday showed.
The Thomson Reuters/University of Michigan preliminary May
reading on the overall index on consumer sentiment improved to
77.8 from 76.4 in April, topping forecasts for 76.2.
It was the highest reading since January 2008.

Despite the recent slowdown in job growth, nearly twice as
many consumers reported hearing about new job gains than said
they had heard about recent job losses, the survey said.
The data suggests that either more positive numbers on the
labor market will be seen soon, or that consumers have ratcheted
up their expectations too high, survey director Richard Curtin
said in a statement.
"The most likely prospect is that job growth returns to a
modest pace of gains and consumers trim their overly optimistic
expectations, with not much change in overall confidence until
after the November (presidential) election and the decisions on
tax policy," said Curtin.
Consumers' buying plans for vehicles and durable goods also
improved at the beginning of the month, with 65 percent saying
buying conditions were favorable, the highest in more than a
year.
U.S. stocks held onto losses immediately after the
data, before trading at flat levels. Treasuries
maintained their gains, and the dollar rose against the yen
.
The survey's barometer of current economic conditions also
rose to its highest in more than four years, jumping to 87.3
from 82.9.
The gauge of consumer expectations slipped to 71.7 from
72.3, however.
Consumers' assessment of their personal financial situations
remained dismal, with just 29 percent of households saying their
finances had improved, unchanged from a year ago.
The survey's one-year inflation expectation continued to
ease after a run-up earlier in the year, falling to 3.1 percent
from 3.2 percent. The survey's five-to-10-year inflation outlook
edged up to 3.0 percent from 2.9 percent.