U.S. Consumer Sentiment Deteriorates Amid Concerns About Higher Tariffs
June 14 2019 - 6:12AM
RTTF2
Consumer sentiment in the U.S. has deteriorated in the month of
June, according to a report released by the University of Michigan
on Friday, with the pullback in sentiment reflecting concerns about
the impact of higher tariffs.
The preliminary report said the consumer sentiment index fell to
97.9 in June from 100.0 in May, while economists had expected the
index to dip to 98.0.
"Some of the decline was due to expected tariffs on Mexican
imports, which may be reversed in late June, but most of the
concern was with the 25% tariffs on nearly half of all Chinese
imports," said Surveys of Consumers chief economist Richard
Curtin.
He added, "Consumers responded by lowering growth prospects for
the national economy, and as a consequence, reduced the expected
gains in employment."
The decrease in consumer sentiment reflected a deterioration in
expectations, with the index of consumer expectations tumbling to
88.6 in June from 93.5 in May.
On the other hand, the report said the current economic
conditions index climbed to 112.5 in June from 110.0 in the
previous month.
Inflation expectations showed a notable decline during the
month, with one-year inflation expectations falling to 2.6 percent
from 2.9 percent and five-year inflation expectations slumping to
2.2 percent from 2.6 percent.
"Consumers anticipated an average long-term inflation rate of
just 2.2%, the lowest rate the surveys have recorded since the
question was introduced forty years ago," Curtin said.
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