(RTTNews) – A report released Friday by the University of Michigan showed that consumer sentiment in the United States fell to its lowest level on record in the month of June.
Preliminary data showed the consumer sentiment index dipped to 50.2 in June from 58.4 in May. Economists expected the index to drop to 58.0.
“Consumer sentiment was down 14% from May, continuing a downward trend over the past year and reaching its lowest level on record, comparable to the trough reached in the middle of the 1980 recession,” he said. said Director of Consumer Surveys Joanne Hsu.
She added: “All components of the Sentiment Index have fallen this month, with the steepest decline in the outlook for the year ahead in trading terms.”
The report showed the consumer expectations index dipped to 46.8 in June from 55.2 in May, while the current economic conditions index fell to 55.4 from 63.3.
On the inflation front, one-year inflation expectations fell from 5.3% in May to 5.4% in June. Five-year inflation expectations also rose to 3.3% from 3.0%.
“Forty-six percent of consumers attributed their negative views to inflation, up from 38% in May; this share has only been exceeded once since 1981, during the Great Recession,” Hsu said.
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