A report from
the University of Michigan showed on Friday that the preliminary reading for
the Reuters/Michigan index of consumer sentiment fell 5.1 per cent m-o-m to 65.6
in early June. This was the lowest reading since November 2023 (61.3).
Economists had forecast
the indicator would rise to 72.0 this
month from the May final reading
of 69.1.
According to
the report, the index of current economic conditions tumbled 10.2 per cent m-o-m to 62.5 in June, while the
index of consumer expectations dropped 1.7 per cent m-o-m to 67.6.
The report also
revealed that the estimates of year-ahead expected inflation held steady at
3.3 per cent early this month. Meanwhile, the 5-year expected inflation increased
from 3.0 per cent to 3.1 per cent, the highest level
since November 2023 (3.2 per cent).
Commenting on
the latest findings, Surveys of Consumers Director Joanne Hsu noted that 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,” she added.