Early results from the University of Michigan’s consumer sentiment index show sentiment is currently about 31% above the trough seen in June 2022.
WASHINGTON – Preliminary results show consumer sentiment declined 3.5 points in June to hit 65.6, 1.4 points higher than one year ago.
The Current Economic Conditions Index fell 7.1 points from the previous month to 62.5, 6.4 lower than year-ago levels. The Consumer Expectations Index decreased 1.2 points from May, 6.5 points higher than the June 2023 Index.
“Consumer sentiment was little changed in June; this month’s reading was a statistically insignificant 3.5 index points below May and within the margin of error. Sentiment is currently about 31% above the trough seen in June 2022 amid the escalation in inflation. Assessments of personal finances dipped, due to modestly rising concerns over high prices as well as weakening incomes. Overall, consumers perceive few changes in the economy from May,” said University of Michigan Surveys of Consumers Director Joanne Hsu.
Year-ahead inflation expectations were unchanged this month at 3.3%, above the 2.3-3.0% range seen in the two years prior to the pandemic. Long-run inflation expectations inched up from 3.0% last month to 3.1% this month; the June reading should be interpreted as essentially unchanged from May. Long-run inflation expectations have been remarkably stable over the last three years but remain elevated relative to the 2.2-2.6% range seen in the two years pre-pandemic.
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