June Consumer Sentiment Up 8.8% from May, 28.8% YOY

June 30, 2023 from Floor Focus FloorDaily News

Ann Arbor, MI, June 30, 2023 – Consumer sentiment rose 8.8% to 64.4 in June, according to final results from the University of Michigan Survey of Consumers.

This represents a 28.8% increase year over year.

“Consumer sentiment rose 9% this month, a consensus improvement across all demographic groups,” says Survey of Consumers director, Joanne Hsu. “The year-ahead economic outlook soared 28% over last month, and long-run expectations rose 11% as well. Overall, this striking upswing reflects a recovery in attitudes generated by the early-month resolution of the debt ceiling crisis, along with more positive feelings over softening inflation. Views of their own personal financial situation were unchanged, however, as persistent high prices and expenses continued to weigh on consumers.

“Year-ahead inflation expectations receded for the second consecutive month, falling to 3.3% in June from 4.2% in May. The current reading is the lowest since March 2021. Long-run inflation expectations were little changed from May at 3.0%, again staying within the narrow 2.9-3.1% range for 22 of the last 23 months. These expectations remained elevated relative to the 2.2-2.6% range seen in the two years pre-pandemic.”