Confidence among American consumers in June eased from an almost one-year high as favorable views about personal finances were offset by concerns about the economy’s prospects.
The University of Michigan’s preliminary index of sentiment cooled to 94.3 from 94.7 in May. The median projection in a Bloomberg survey called for a reading of 94.
Consumers rated their current financial situation stronger than at any time since 2007, reflecting improved wage gains and low inflation. At the same time, households didn’t see the economy growing as fast as last year.
“Anticipated gains in inflation-adjusted incomes rose to the highest levels since the January 2007 peak,” Richard Curtin, director of the University of Michigan consumer survey, said in a statement. “Indeed, compared with a year ago, the sole reason for more favorable financial prospects was lower inflation.”
Over the next five to 10 years, they project a 2.3 percent rate of price growth, the lowest in records going back almost five decades. It was 2.5 percent in the prior month.
Respondents expected a 2.4 percent inflation rate in the next year, matching the May survey as the lowest since September 2010.
The current conditions index, which measures Americans’ perceptions of their personal finances, advanced to 111.7, the highest since July 2005, from the prior month’s 109.9.
The gauge of expectations six months from now declined to 83.2 from 84.9 that was the best since June 2015.
The report showed a measure of buying conditions for the purchase of durable goods such as automobiles rose in June to the highest level this year.
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