Consumer sentiment in U.S improves in early June: Study

Consumer sentiment in the United States improved in early June as inflation worries faded and people were more confident about future economic development and jobs, according to a study released on Friday.

The University of Michigan stated its preliminary consumer mood index improved to 86.4 in the first half of this month from a final score of 82.9 in May.

"Stronger growth in the national economy was anticipated," survey director Richard Curtin said in a statement.

According to Curtin, the improvement in attitude was led mostly by middle- and upper-income households, highlighting the ongoing unequal character of the economic recovery.

The index of current economic circumstances in the poll rose to 90.6 from 89.4 in May. Its measure of consumer expectations increased from 78.8 to 83.8, the highest since February 2020.

The survey's one-year inflation forecast decreased to 4.0 % from 4.6 % in May, while its five-to-10-year inflation forecast fell to 2.8 % from 3.0 %.

While consumers have a more positive opinion of the job market and economy than they did in May, and their inflation concerns have lessened, individuals are nonetheless concerned about high prices for items such as automobiles and homes.

"Spontaneous references to market prices for homes, vehicles, and household durables fell to their worst level since the all-time record in November 1974," Curtin said. "These unfavorable perceptions of market prices reduced overall buying attitudes for vehicles and homes to their lowest point since 1982."

Source: Reuters