Reported 9 months ago
In June, US consumer sentiment decreased by less than initially estimated, indicating expectations of moderating inflationary pressures. The University of Michigan's final June index dropped slightly to 68.2 from the preliminary reading of 65.6. Consumers foresee a 3% increase in prices over the next year, down from 3.3% in May, and costs rising 3% over the next five to 10 years. The improvement in sentiment at the end of the month is linked to a more positive economic outlook and expectations of lower interest rates, but concerns persist about the impact of high prices on personal finances. Despite easing inflation rates since 2022, elevated costs of essentials like groceries have left Americans disheartened, with consumer sentiment remaining below pre-pandemic levels. Signs of a cooling labor market include a 4% unemployment rate in May and rising unemployment benefit applications since the end of 2021.
Source: YAHOO