US consumer sentiment improves in June, concerns of high cost of living remain

[WASHINGTON] US consumer sentiment rebounded from record lows in June, though households remained worried about the high cost of living, a survey showed on Friday.

The University of Michigan’s Surveys of Consumers said its Consumer Sentiment Index increased to a final reading of 49.5 this month from 44.8 in May. It was a slight improvement from 48.9 earlier this month. Economists polled by Reuters had forecast the index rising to a final reading of 50.0.

“The cost of living remains at the forefront of consumers’ minds,” said Joanne Hsu, the director of the Surveys of Consumers. “For the third straight month, over half of consumers spontaneously mentioned that high prices are weighing down their personal finances.”

The survey’s measure of consumer expectations for inflation over the next year fell to a still-high 4.6 per cent this month from 4.8 per cent in May.

One-year inflation expectations were unchanged from earlier in the month. Consumers’ expectations for inflation over the next five years slipped to 3.3 per cent from 3.9 per cent last month. Long-term inflation expectations were at 3.4 per cent earlier this month. REUTERS