Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

U.S. Consumer Sentiment Rises in Early June; Inflation Expectations Ease -- University of Michigan

06/11/2021 | 08:32am EDT

By Xavier Fontdegloria

Consumer sentiment in the U.S. rose in early June, reversing part of the fall registered in May, amid an improvement of the short-term outlook and easing inflation expectations.

The preliminary estimate of the index of consumer sentiment released Friday by the University of Michigan came in at 86.4 in June, up from 82.9 in May. The reading is above expectations from economists polled by The Wall Street Journal, who forecast the indicator to increase to 84.4.

The early June gain was mainly among middle and upper income households and for future economic prospects rather than current conditions, said Richard Curtin, the survey's chief economist.

Rising inflation remained a top concern of consumers, although the expected rate of inflation declined in early June, he said.

Americans' expected inflation rate eased somewhat in June. For the next year, consumers expect prices to increase 4% compared with a 4.6% in May. For the next five years, inflation is expected to rise by 2.8%, down from 3% the prior month.

June's rise in consumer sentiment slightly offsets the losses registered in May, when soaring inflation expectations dented consumers' mood. The indicator is far from February's 2020's pre-pandemic level of 101.0, but the reading should improve as job growth accelerates, economists say.

Consumers' assessment of the current economic conditions increased slightly to 90.6 in June from 89.4 in May. The index of consumer expectations--which reflects the balance of respondents anticipating improved business conditions in the next six months--rose to 83.8 from 78.8 the previous month.

Stronger growth in the national economy was anticipated, with an all-time record number of consumers anticipating a net decline in unemployment, Mr. Curtin said.

Despite the decline in inflation expectations, spontaneous references to market prices for homes, vehicles and household durables fell to their worst level since the all-time record in November 1974, he said.

The survey was conducted between May 26 and June 9. The final reading for the month will be published on June 25.

Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com


(END) Dow Jones Newswires

06-11-21 1032ET

Latest news "Economy & Forex"
08:08aGold regains some ground, but set for worst week in 9 months
08:03aWood Mackenzie buys consultancy Roskill to expand energy transition offering
07:59aMETHANE MENACE : Aerial survey spots 'super-emitter' landfills
07:52aALPHABET  : Exclusive-Google's adtech business set to face formal EU probe by year-end -sources
07:50aViewTech Borescopes Exhibiting at AISTech June 29 – July 1 at Booth 2647
07:45aAFRICAN DEVELOPMENT BANK  : Africa Renewable Energy Fund II secures €125 million first close with SEFA and CTF investments
07:44aExplainer-Mystery behind slump in India's Adani Group company shares
07:44aGrant Thornton loses fight in UK top court over 32 million sterling swaps bill
07:43aFed-fuelled dollar forces rival currencies onto back foot
07:42aECB's Governing Council confirms that exceptional circumstances continue to justify leverage ratio relief (220 KB)
Latest news "Economy & Forex"