Consumer sentiment in the U.S. deteriorated by even more than previously estimated in the month of June, Thomson Reuters and the University of Michigan revealed in a report on Friday.
The report showed that the consumer sentiment index for June was downwardly revised to 73.2 from the mid-month reading of 74.1. The downward revision came as a surprise to economists, who had expected the index to be unrevised.
With the unexpected downward revision, the consumer sentiment index is down sharply compared to the nearly five-year high of 79.3 seen in May.
The drop pulled the consumer sentiment index down to its lowest level since coming in at 69.9 in December of 2011.
Peter Boockvar, managing director at Miller Tabak, said, "In the eyes of the consumer, it's apparent that the benefit of lower gasoline prices is being more than offset by a very uncertain labor market and lackluster income growth."
The current economic conditions index for June was downwardly revised to 81.5 from 82.1 and is well below the 87.2 reported for May.
Additionally, the consumer expectations index for June was downwardly revised to 67.8 from 68.9. The index came in at 74.3 in the previous month.
The report also showed that one-year inflation expectation crept up to 3.1 percent in June from 3.0 percent in May, while the five-to-ten-year inflation outlook rose to 2.8 percent from 2.7 percent.
by RTT Staff Writer
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