US consumer sentiment climbs, inflation expectations fall

By Ovunc Kutlu

ISTANBUL (AA) – US consumer sentiment increased in June, while inflation expectations declined, according to the University of Michigan's consumer survey final results released Friday.

The index of consumer sentiment jumped 5.2 percentage points to 64.4 in June, climbing to its highest level in four months, from 59.2 in May, according to the final readings.

The market expectation for the index was to come in at 63.9.

"Consumer sentiment rose 9% this month," Surveys of Consumers Director Joanne Hsu said in a statement. "The year-ahead economic outlook soared 28% over last month, and long-run expectations rose 11% as well."

"Overall, this striking upswing reflects a recovery in attitudes generated by the early-month resolution of the debt ceiling crisis, along with more positive feelings over softening inflation," she added.

The year-ahead inflation expectations decreased for the second consecutive month, falling from 4.2% in May to 3.3% in June -- the lowest reading since March 2021.

The index of current economic conditions rose 4.1 points to 69.0 in June, from 64.9 in May, according to the final results.

The index of consumer expectations increased 6.1 points to 61.5 from 55.4 during that period.