Shoppers at Third Street Promenade outdoor shopping mall on August 17, 2012 in Santa Monica, California. (Photo: Reuters)
The University of Michigan said Friday that their preliminary June reading on the overall consumer sentiment index came in at 94.6. That reading came in more than economists expected in the month of June, up from the final reading of 90.7 the month prior.
Economist polled by Reuters gave a median forecast of 91.5 for the month of May, though they still may end up being closer to reality.
Digging into the survey, the barometer of current economic conditions increased to 106.8 from 100.8 the month prior, and beat out the forecast of 96.5. The survey’s gauge of consumer expectations ticked up to 86.8 from the final May reading of 84.2. Economists were looking for 85.
The survey’s one-year inflation expectation, however, fell to 2.7 percent from 2.8 percent. Those expectations don’t jive with the Labor Department’s Producer Price Index (PPI) released earlier Friday, which showed the largest gain in inflation in nearly three years. If expectations are correct, then the price gain may just be a temporary reflection of increasing gas prices.
