A report from
the University of Michigan showed on Friday that the preliminary reading for
the Reuters/Michigan index of consumer sentiment rose 15.9 per cent m-o-m to 60.5
in early June. This marked the first increase in the indicator in six months and
represented the highest reading since
February (64.7).
Economists had expected
the index would advance to 53.5 this month from the May final reading
of 52.2.
According to
the report, the index of current economic conditions jumped 8.1 per cent m-o-m to 63.7 in May (the highest level
since March (63.8)), while the index of consumer expectations climbed 21.9 per
cent m-o-m to 58.4 (the highest level since February (64.0)).
The report also
revealed that the estimates of year-ahead expected inflation declined from 6.6
per cent in May to 5.1 per cent
early this month, the lowest since March (5.0 per cent). At the same time, the 5-year expected inflation slipped
from 4.2 per cent to 4.1
per cent, also the lowest since March (4.1 per cent).
Commenting on
the latest findings, Surveys of
Consumers Director Joanne Hsu noted that consumers’ fears about the potential
impact of tariffs on future inflation have softened somewhat in June. “Still,
inflation expectations remain above readings seen throughout the second half of
2024, reflecting widespread beliefs that trade policy may still contribute to
an increase in inflation in the year ahead,” she added.