U.S. Consumer Sentiment Rebounds More Than Previously Estimated In June

(RTTNews) - The University of Michigan released revised data on Friday showing U.S. consumer sentiment improved by more than previously estimated in the month of June.

The report said the consumer sentiment index for June was upwardly revised to 64.4 from the preliminary reading of 63.9. Economists had expected the index to be unrevised.

With the upward revision, the consumer sentiment index is well above the May reading of 59.2, which marked a six-month low.

Surveys of Consumers Director Joanne Hsu noted the year-ahead economic outlook soared 28 percent over last month, while long-run expectations shot up 11 percent as well.

"Overall, this striking upswing reflects a recovery in attitudes generated by the early-month resolution of the debt ceiling crisis, along with more positive feelings over softening inflation," Hsu said.

She added, "Views of their own personal financial situation were unchanged, however, as persistent high prices and expenses continued to weigh on consumers."

The report showed the index of consumer expectations surged to 61.5 in June from 55.4 in May, while the current economic conditions index jumped to 69.0 in June from 64.9 in May.

MNI Indicators also said year-ahead inflation expectations slowed significantly, tumbling to 3.3 percent in June from 4.2 percent in May and hitting the lowest level since March 2021.

Five-year inflation expectations edged down to 3.0 percent in June from 3.1 percent in May, again staying within the narrow 2.9-3.1 percent range for 22 of the last 23 months.

"These expectations remained elevated relative to the 2.2-2.6% range seen in the two years pre-pandemic," said Hsu.

A separate report released by the Conference Board on Tuesday showed a significant improvement in U.S. consumer confidence in the month of June.

The Conference Board said its consumer confidence index jumped to 109.7 in June from a revised 102.5 in May. Economists had expected the index to rise to 103.7 from the 102.3 originally reported for the previous month.