U.S. consumer confidence suffered an unexpected downturn in June, the first results of the University of Michigan's monthly survey showed on Friday.

The confidence index calculated as part of this survey came in at 65.6 in the first estimate, after having reached 69.1 in February. In contrast, economists were forecasting an improvement to 73.

Joanne Hsu, the report's author, attributes the decline to household concerns about the current state of their finances, against a backdrop of persistently high prices and weakening real wages.

Their inflation expectations for the next 12 months thus stood at 3.3%, above the 2.3% to 3% range that prevailed before the pandemic.

The sub-index measuring consumers' judgment of their current situation dropped to 62.5, from 69.6 last month, while that measuring their outlook fell to 67.6 from 68.8.

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