Consumer Sentiment Declined 5.1% to 65.6 in June
Ann Arbor, MI, June 14, 2024-Consumer sentiment declined 5.1% to 65.6 in June, according to preliminary results from the University of Michigan Survey of Consumers.
Although down compared to May, June's reading represents a 2.2% increase year over year.
“Consumer sentiment was little changed in June; this month’s reading was a statistically insignificant 3.5 index points below May and within the margin of error,” said Survey of Consumers director Joanne Hsu. “Sentiment is currently about 31% above the trough seen in June 2022 amid the escalation in inflation. 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.
“Year-ahead inflation expectations were unchanged this month at 3.3%, above the 2.3-3.0% range seen in the two years prior to the pandemic. Long-run inflation expectations inched up from 3.0% last month to 3.1% this month; the June reading should be interpreted as essentially unchanged from May. Long-run inflation expectations have been remarkably stable over the last three years but remain elevated relative to the 2.2-2.6% range seen in the two years pre-pandemic.”