The Michigan Consumer Sentiment Index released by the University of Michigan showed that the preliminary reading of June improved to 99.3 from 98 to beat the market expectation of 98.5. Below are some key quotes from the official publication.
- Consumer sentiment rose slightly in early June due to consumers’ more favorable assessments of their current financial situation and more favorable views of current buying conditions for household durables.
- The Expectations Index, in contrast, declined to its lowest level since the start of the year due to less favorable prospects for the overall economy.
- The unemployment rate during the year ahead was more often expected to decline than increase (29% versus 23%), with most (48%) expecting it to remain unchanged at its current low, which should modestly accelerate purchases.
- Moreover, the continued small declines that are now anticipated in the unemployment rate, as well as more robust gains in household income, will bolster real personal consumption expenditures during the year ahead.
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