The final reading
for the May Reuters/Michigan index of consumer sentiment came in at 68.2 compared
to the flash reading of 65.6 and the May final reading of 69.1. Still, this was the lowest reading in seven months.
Economists
had forecast the indicator to be revised marginally up to 65.8.
The details of
the latest Surveys of Consumers of the University of Michigan revealed that the
index of current economic conditions fell by 5.3 per cent m-o-m to 65.9 this
month while the index of consumer expectations increased by 1.2 per cent m-o-m
to 69.6.
The report also
revealed that the year-ahead inflation expectations decreased from 3.3 per cent in May to 3.0 per cent in June,
compared
to the preliminary reading of 3.3 per cent. This represented the lowest reading in
three months. Meanwhile, the 5-year inflation expectations held steady at 3.0 per cent, compared to the
preliminary estimates of 3.1%.
Commenting on
the latest results, Joanne Hsu, Surveys of Consumers Director, noted that, while
consumers exhibited confidence that inflation will continue to moderate, many
expressed concerns about the effect of high prices and weakening incomes on
their personal finances. “These trends offset the improvements in the short-
and long-run outlook for business conditions stemming in part from expectations
for softening interest rates,” she added.