Consumer Sentiment was 50.2 in June, according to the University of Michigan Consumer Sentiment Index. June’s figure was 8.2 points lower than the May reading and is 35.3 points below the June 2021 index. The Current Economic Conditions Index fell 7.9 points from the previous month to 55.4 and is 33.2 points below the June 2021 index. The Consumer Expectations Index decreased 8.4 points to 46.8 and is 36.7 points lower from a year ago.
“Consumer sentiment declined by 14% from May, continuing a downward trend over the last year and reaching its lowest recorded value, comparable to the trough reached in the middle of the 1980 recession. All components of the sentiment index fell this month, with the steepest decline in the year-ahead outlook in business conditions, down 24% from May. Consumers’ assessments of their personal financial situation worsened about 20%. 46% of consumers attributed their negative views to inflation, up from 38% in May; this share has only been exceeded once since 1981, during the Great Recession. Overall, gas prices weighed heavily on consumers, which was no surprise given the 65-cent increase in national gas prices from last month (AAA). Half of all consumers spontaneously mentioned gas during their interviews, compared with 30% in May and only 13% a year ago. Consumers expect gas prices to continue to rise a median of 25 cents over the next year, more than double the May reading and the second highest since 2015. In addition, a majority of consumers spontaneously mentioned supply shortages for the ninth consecutive month” said Joanne Hsu, Director of UM Surveys of Consumers.
Read the University of Michigan Surveys of Consumers release.