U.S. Consumer Confidence Climbs Sharply in June
(MENAFN) In a surprising surge, U.S. consumer confidence climbed sharply in June, signaling a renewed sense of optimism about the economy. The University of Michigan reported its consumer sentiment index rose to 60.5, far surpassing analysts' expectations of 53.5.
This marks an 8.3-point increase from May's reading of 52.2, highlighting growing confidence among American households.
The gains were broad-based. The index tracking current economic conditions—how consumers feel about their personal finances and the overall economy—jumped to 63.7, a 4.8-point improvement. Meanwhile, the expectations index, which measures longer-term economic sentiment, shot up 10.5 points to reach 58.4.
Inflation expectations ease
Inflation worries also moderated. Short-term inflation expectations fell to 5.1% from 6.6%, while long-term projections dipped slightly from 4.2% to 4.1%. Both figures are at their lowest since March.
Though some anxiety over tariffs and their inflationary effects has faded, long-term expectations remain higher than levels observed in late 2024. This suggests that consumers remain wary about the direction of future U.S. trade policies.
These figures may influence upcoming Federal Reserve policy discussions, as improved sentiment and easing inflation pressures could shift the central bank’s stance in the coming months.
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