WASHINGTON (dpa-AFX) - A report released by the University of Michigan on Friday showed consumer sentiment in the U.S. improved by slightly more than previously estimated in the month of June.
The University of Michigan said its consumer sentiment index for June was upwardly revised to 60.7 from a preliminary reading of 60.5.
Economists had expected the consumer sentiment index to be unrevised from the preliminary reading, which was already up sharply from 52.2 in May.
The sharp monthly increase by the headline index came as the index of consumer expectations surged to 58.1 in June from 47.9 in May, while the current economic conditions index jumped to 64.8 in May from 58.9 in June.
'The improvement was broadbased across numerous facets of the economy, with expectations for personal finances and business conditions climbing about 20% or more,' said Surveys of Consumers Director Joanne Hsu.
'Despite June's gains, however, sentiment remains about 18% below December 2024, right after the election; consumer views are still broadly consistent with an economic slowdown and an increase in inflation to come.'
The report also said year-ahead inflation expectations plunged to 5.0 percent in June from 6.6 percent in May, hitting a three-month low.
Long-run inflation expectations also slipped to a four-month low of 4.0 percent in June from 4.2 percent in May.
'Consumers' fears about the potential impact of tariffs on future inflation softened somewhat in June,' said Hsu. 'Still, inflation expectations remain above readings seen throughout the second half of 2024, reflecting widespread beliefs that risks to inflation have not fully abated.'
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