High prices and weakening incomes weigh on US consumer confidence

28th Jun 2024 16:02

(Sharecast News) - The impact of high prices and softer incomes on personal finances is what worried Americans most in June, the results of a closely followed survey revealed.

According to the University of Michigan, that was despite their confidence that inflation would continue to slow and an improved outlook for business conditions.

The latter was partly due to expectations for lower interest rates.

Revised data showed that the university's consumer confidence index dipped from a reading of 69.1 in May to 68.2 for June (consensus: 65.8).

A gauge of inflation expectations one year ahead derived from the same survey slipped from 3.3% during the previous month to 3.0%.

In the two years before Covid-19 they had remained withing a range of 2.3-3.0%.

Long-run inflation expectations meanwhile were steady for a third month running at 3.0%.

They had run at 2.2-2.6% in the two years before the pandemic.