US Consumer Confidence Declines in June as Economic Concerns WeighUS Consumer Confidence Declines in June as Economic Concerns Weigh American consumers are growing increasingly pessimistic about the near-term economic outlook, according to a recent report released on Tuesday. The University of Michigan’s Consumer Sentiment Index fell sharply in June, dropping from 82.9 in May to 79.9 this month. The decline is primarily driven by concerns about rising inflation and the impact of the Federal Reserve’s interest rate hikes. The index measuring consumers’ expectations for the next six months tumbled to 72.7, its lowest level since 2011. “Inflation is the main culprit depressing sentiment,” said Richard Curtin, chief economist for the University of Michigan’s Surveys of Consumers. “Large majorities of consumers anticipate that inflation will continue to worsen during the year ahead.” The report also found that consumers are becoming more pessimistic about their personal financial prospects. The index of expected personal finances for the next year fell 10.1% in June, reaching its lowest level since 2014. “Consumers, particularly those with lower incomes, are most concerned about rising interest rates on mortgages and auto loans,” Curtin added. The decline in consumer confidence is a worrisome sign for businesses, as consumer spending accounts for about two-thirds of economic activity in the United States. The Federal Reserve is closely monitoring consumer sentiment as it considers future interest rate decisions. In Southeast Florida, the impact of declining consumer confidence may be offset somewhat by the region’s strong tourism and hospitality sectors. However, businesses in other industries, such as retail and manufacturing, could be affected by the slowdown in consumer spending.
US consumer confidence falls in June as Americans worry about near-term prospects | Southeast FloridaSpot on Florida
