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Archive for Sunday, June 28, 2009

Consumer sentiment increases in June

June 28, 2009

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— U.S. consumer sentiment rose in June on improved views of current conditions, but overall it remained at relatively low levels, according to a survey released Friday by the University of Michigan and Reuters.

For its fifth consecutive monthly gain, the consumer sentiment index rose to 70.8 in June from 68.7 in May. Recent readings have shown the weak labor market continues to dampen consumer sentiment as people worry about their own financial situation.

“Consumers have become convinced that the steepest economic declines are now over, but very few consumers anticipate a quick end to the recession,” said Richard Curtin, director of the survey, in a statement. “The majority of consumers reported that their financial situation had recently worsened, with income declines reported three times as frequently as income gains.”

In mid-June the sentiment estimate was 69. Economists were looking for a final June result of 69. The index hit a 28-year low of 55.3 in November, and has averaged 88.2 over the last 10 years.

Consumers’ views of current conditions rose to 73.2 in June from 67.7 in May. Their expectations dipped to 69.2 from 69.4. And their expectations for inflation in one year rose to 3.1 percent from 2.8 percent.

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