(Reuters) – U.S. consumer sentiment rose to its highest level in more than four years in early May as Americans were upbeat about the job market and buying plans improved, a survey showed on Friday, offering an encouraging sign for the economic recovery.

Separate data earlier in the day showed U.S. producer prices unexpectedly fell in April as energy costs dropped the most in six months, a sign of easing inflation pressures that could give the Federal Reserve more room to help the economy should growth weaken.

The Thomson Reuters/University of Michigan’s preliminary May reading on the overall index on consumer sentiment improved to 77.8 from 76.4 in April, topping forecasts for a small decline to 76.2.  Read more