The monthly survey of 500 consumers measures attitudes toward topics like personal finances, inflation, unemployment, government policies and interest rates. The index of consumer expectations hit 87.5 in the preliminary report, up from 77.6 in April. The index of current economic conditions hit 108.6, up from 106.7 in April's final reading.
Friday's results showed that uncertainty about November's elections was offset by an improved jobs outlook and expectations of lower inflation and interest rates, especially among lower income and younger households, said Richard Curtin, a chief economist of the survey.
"To be sure, the data still indicated the negative impact of uncertainty about future economic policies associated with the Presidential election, but its overall impact was overwhelmed by favorable economic developments," Curtin said in a statement.