Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

U.S. Consumer Sentiment Rises, Inflation Outlook Moderates

Published 2021-06-11, 10:40 a/m
Updated 2021-06-11, 10:40 a/m
© Reuters.

© Reuters.

(Bloomberg) -- U.S. consumer sentiment rose in early June by more than expected on improved outlooks for the economy and moderating inflation expectations.

The University of Michigan’s preliminary sentiment index increased to 86.4 from 82.9 in May, data released Friday showed. The figure came in above the median 84.2 in a Bloomberg survey of economists.

Consumers expect inflation to rise 4% over the next year, down from 4.6% in the May survey. They expect prices over the next five years to increase 2.8%, compared to 3% last month.

“Stronger growth in the national economy was anticipated, with an all-time record number of consumers anticipating a net decline in unemployment,” Richard Curtin, director of the survey, said in the report.

“Rising inflation remained a top concern of consumers, although the expected rate of inflation declined in early June,” Curtin said.

Consumers are more upbeat as travel restrictions lift, the weather warms and health concerns ebb. At the same time, policy makers and investors are closely monitoring inflation expectations as the economy accelerates.

Even though inflation expectations eased overall, lower-income and older households were more likely to report that the recent pickup in prices already had a negative impact on their living standards.

Housing, Durables

The share of consumers reporting high home prices reached a record high, while mentions of more expensive vehicle and household durable goods were the highest since 1981.

A report Thursday from the Labor Department showed that the consumer price index rose in May by more than forecast, extending a months-long buildup in inflation.

The gauge of current conditions rose to 90.6 from 89.4, while a measure of expectations increased to 83.8 from 78.8, according to the survey conducted May 26 to June 9.

A measure of the year-ahead economic outlook reached the highest level since before the pandemic.

(Adds graphic)

©2021 Bloomberg L.P.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.