High inflation brought down consumer sentiment to the lowest level in seven months in early June, the University of Michigan’s survey of U.S. households showed Friday.
The University of Michigan Consumer Sentiment Index fell to 65.6 in the preliminary June reading, down from 69.1 in May. Economists had expected the index to rise to 72.
The decline was driven by a worse assessment of current conditions and a smaller dip in the expectations gauge.
“Assessments of personal finances dipped, due to modestly rising concerns over high prices as well as weakening incomes,” the survey’s director, Joanne Hsu, said. “Overall, consumers perceive few changes in the economy from May.”
Year-ahead inflation expectations remained at the high level of 3.3 percent hit in May, the highest reading since November. Longer-run inflation expectations ticked up to 3.1 percent from three percent, which Hsu was should be understood as “essentially unchanged” from the prior month.