By Brai Odion-Esene
WASHINGTON (MNI) – U.S. consumer sentiment rose in June according
to the first reading of the Reuters/University of Michigan Consumer
Sentiment data released Friday.
The index came in at 75.5 vs. 73.6 reported in May.
The index’s preliminary number for current conditions came in at
82.9 for June vs. May’s 81.0 and expectations were 70.7 vs. last month’s
final 68.8.
Consumers’ initial 1-year inflation expectations came in at 2.7%
compared to May’s final expectation of 3.2%. 5-year inflation
expectations were 2.8% vs. May’s final reading of 2.9%.
The median forecast in the Market News International survey of
economists was for the index to rise 0.4 point to 74.0, consistent with
the improving trend in jobs creation, which was seen supporting
expectations in particular.
That support was likely offset by financial markets volatility and
concerns about the impact of European developments, analysts had said.
They had also cited a possible negative impact on confidence related to
the oil spill in the Gulf of Mexico.
In its latest survey of economic conditions around the country —
the “Beige Book” — the Federal Reserve Wednesday cited some concerns
about the potential impact of the European fiscal crisis “on both
financial and business conditions,” as well as the potential for a “much
greater” impact from the Gulf of Mexico oil spill. The latter so far has
affected vacation lodging.
The final the consumer sentiment index data for June will be
released June 25.
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: M$U$$$,MAUDS$]
