Consumer Sentiment Improves Slightly in June but Remains Sluggish

By Matt Grossman

Consumer sentiment improved to begin June, according to the University of Michigan's monthly survey, as a retreat in gasoline prices boosted Americans' economic spirits

The Michigan consumer-sentiment index bounced off its all-time low set in May to rise to 48.9 in the initial June reading, from 44.8 a month earlier. Economists polled by The Wall Street Journal had been expecting a reading of 46.

A final June figure will be published later this month, based on additional interviews.

"Lower-income consumers exhibited a particularly strong sentiment increase, consistent with the fact that gasoline comprises a larger share of their budgets," said Joanne Hsu, the survey's director. She said sentiment overall remains downbeat, with concerns focused on a recent pickup in inflation.

At about $4.11 a gallon to end the week, gasoline prices are down nearly 10% versus a month ago, according to AAA, but remain well above the $3.13 seen this time last year.

Consumers' forward-looking inflation expectations over the next year and in the long run have both declined in June, but remained elevated, Hsu said.

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(END) Dow Jones Newswires

06-12-26 1040ET